Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) Total assets Total liabilities Total stockholders' equity E-Travel $4,587,

image text in transcribedimage text in transcribed

Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) Total assets Total liabilities Total stockholders' equity E-Travel $4,587, 156 2,354,475 2,232,681 Pricecheck $1,600, 224 467,610 1,132,614 Sales revenue Interest expense Tax expense Net income $2,505,426 75,233 136,400 281,526 $1,888,212 15, 084 38,168 471,472 Required: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Enter dollar answers in thousands of dollars and round ratios to 2 decimal places.) Debt to Equity Ratio E-Travel Debt to Equity Ratio Pricecheck 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. (Enter dollar answers in thousands of dollars and round ratios to 1 decimal place.) Times Interest Earned Ratio E-Travel Times Interest Earned Ratio Pricecheck

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing

Authors: O. Ray Whittington, Kurt Pany, Walter B. Meigs

12th Edition

0256167796, 978-0256167795

More Books

Students also viewed these Accounting questions

Question

4. Explain the strengths and weaknesses of each approach.

Answered: 1 week ago