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 (S in thousands) E-Travel Pricecheck 4,587,156$1,600,224 Total assets Total liabilities Total stockholders'

image text in transcribed

Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data (S in thousands) E-Travel Pricecheck 4,587,156$1,600,224 Total assets Total liabilities Total stockholders' 2,354,475 467,610 1,132,614 2,505.42651,888,212 2,232,681 equity Sales revenue Interest expense Tax expense Net income 15,084 38,168 281,526 471,472 75,233 136,400 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.) ebt to Equity Ratio E-Travel Debt to Equity Ratio Pricecheck 1-b. Which company has the higher ratio? E-Travel 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 imes Interest Earned Ratio Pricecheck become due? 2-b. Which company is better able to meet interest payments as they E-Travel 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

Step: 3

blur-text-image

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

Governmental Accounting Auditing And Financial Reporting

Authors: Stephen J. Gauthier

1st Edition

0891252754, 978-0891252757

More Books

Students also viewed these Accounting questions

Question

Describe three other types of visual aids.

Answered: 1 week ago