Selected financial data for Surf City and Paradise Falls are as follows: ($ in millions)Surf City Surf CityParadise FallsParadise Falls 2021202020212020Total assets$16,103$14,862$32,816$34,061Total liabilities9,7808,16513,39814,158Total stockholders’ equity6,3236,69719,41819,903 Sales revenue$6,473 14,586 Interest expense309 402 Tax expense 41 Net income562 2,318 1-a. Calculate the debt to equity ratio for Surf City and Paradise Falls for the most recent year. (Do not round intermediate calculations. Round ratios answers to 2 decimal places. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5)) Debt to Equity RatioSurf City = Paradise Falls = 2-a. Calculate the return on assets for Surf City and Paradise Falls. (Do not round intermediate calculations. Round ratios answers to 2 decimal places. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5)) Return on Assets RatioSurf City = Paradise Falls = 3-a. Calculate the times interest earned ratio for Surf City and Paradise Falls. (Do not round intermediate calculations. Round ratios answers to 1 decimal places. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5)) Times Interest Earned RatioSurf City = Paradise Falls =

Return on Assets: It is refers to the relationship between net income and assets of the company. It…

Answered: entered as 5.5)) Times Interest…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 1OYO

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Selected financial data for Surf City and Paradise Falls are as follows:

($ in millions)	Surf City	Surf City	Paradise Falls	Paradise Falls
	2021	2020	2021	2020
Total assets	$16,103	$14,862	$32,816	$34,061
Total liabilities	9,780	8,165	13,398	14,158
Total stockholders’ equity	6,323	6,697	19,418	19,903

Sales revenue	$6,473		14,586
Interest expense	309		402
Tax expense			41
Net income	562		2,318

1-a. Calculate the debt to equity ratio for Surf City and Paradise Falls for the most recent year. (Do not round intermediate calculations. Round ratios answers to 2 decimal places. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5))

Debt to Equity Ratio
Surf City				=


Paradise Falls				=

2-a. Calculate the return on assets for Surf City and Paradise Falls. (Do not round intermediate calculations. Round ratios answers to 2 decimal places. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5))

Return on Assets Ratio
Surf City				=


Paradise Falls				=

3-a. Calculate the times interest earned ratio for Surf City and Paradise Falls. (Do not round intermediate calculations. Round ratios answers to 1 decimal places. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5))

Times Interest Earned Ratio
Surf City				=


Paradise Falls				=

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entered as 5.5)) Times Interest Earned Ratio Surf City = Paradise Falls =