Iwo online travel companies, E-Travel and Pricecheck, provide the following selected financial d Pricecheck $ 1,678,224 E-Travel $ 5,037,156 2,654,475 2,382,681 $ 2,655,426 470,610 1,207,614 $ 2,038,212 Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Required: 78,233 142,400 287,526 18,084 41,168 477,472 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. 1-b. Which company has higher leverage risk? 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. 2-h Which company is better able to meet interest payments as they become due?
Iwo online travel companies, E-Travel and Pricecheck, provide the following selected financial d Pricecheck $ 1,678,224 E-Travel $ 5,037,156 2,654,475 2,382,681 $ 2,655,426 470,610 1,207,614 $ 2,038,212 Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Required: 78,233 142,400 287,526 18,084 41,168 477,472 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. 1-b. Which company has higher leverage risk? 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. 2-h Which company is better able to meet interest payments as they become due?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data:
Pricecheck
$ 1,678,224
E-Travel
$ 5,037,156
2,654,475
2,382,681
$ 2,655,426
470,610
1,207,614
$ 2,038,212
Total assets
Total liabilities
Total stockholders' equity
Sales revenue
Interest expense
Income tax expense
Net income
Required:
78,233
142,400
287,526
18,084
41,168
477,472
1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck.
1-b. Which company has higher leverage risk?
2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck.
2-b. Which company is better able to meet interest payments as they become due?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education