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Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions). Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Bahama Bay 2024 $9,583 8,022 1,561 $5,847 192 70 317 2023 $9,502 7,486 2,016 Caribbean Key 2023 2024 $8,783 7,463 1,320 $12,819 151 344 350 $8,822 7,453 1,369 Required: 1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. 1-b. Which company has the higher ratio? 2-a. Calculate the return on assets for Bahama Bay and Caribbean Key for the most recent year. 2-b. Which company appears more profitable? 3-a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year. 3-b. Which company is better able to meet interest payments as they become due?

Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions). Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Bahama Bay 2024 $9,583 8,022 1,561 $5,847 192 70 317 2023 $9,502 7,486 2,016 Caribbean Key 2023 2024 $8,783 7,463 1,320 $12,819 151 344 350 $8,822 7,453 1,369 Required: 1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. 1-b. Which company has the higher ratio? 2-a. Calculate the return on assets for Bahama Bay and Caribbean Key for the most recent year. 2-b. Which company appears more profitable? 3-a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year. 3-b. Which company is better able to meet interest payments as they become due?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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part 3-a & 3-b please.
Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions). Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Req 1A Bahama Bay Req 1B Caribbean Key Required: 1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. 1-b. Which company has the higher ratio? 2-a. Calculate the return on assets for Bahama Bay and Caribbean Key for the most recent year. Complete this question by entering your answers in the tabs below. Req 2A Bahama Bay 2024 $9,583 8,022 1,561 $5,847 2-b. Which company appears more profitable? 3-a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year. 3-b. Which company is better able to meet interest payments as they become due? Req 2B 192 70 317 Times Interest Earned Ratio Numerator/Denominator 2023 $9,502 7,486 2,016 Req 3A Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year. (Do not round intermediate calculations. Enter your answer in millions (i.e., $5,500,000 should be entered as 5.5).) Amounts Caribbean Key 2023 2024 $8,783 $8,822 7,463 7,453 1,320 1,369 $12,819 < Prev d 151 344 350 11 Req 3B 6 of 6 0 0 Next >
Transcribed Image Text:Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions). Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Req 1A Bahama Bay Req 1B Caribbean Key Required: 1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. 1-b. Which company has the higher ratio? 2-a. Calculate the return on assets for Bahama Bay and Caribbean Key for the most recent year. Complete this question by entering your answers in the tabs below. Req 2A Bahama Bay 2024 $9,583 8,022 1,561 $5,847 2-b. Which company appears more profitable? 3-a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year. 3-b. Which company is better able to meet interest payments as they become due? Req 2B 192 70 317 Times Interest Earned Ratio Numerator/Denominator 2023 $9,502 7,486 2,016 Req 3A Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year. (Do not round intermediate calculations. Enter your answer in millions (i.e., $5,500,000 should be entered as 5.5).) Amounts Caribbean Key 2023 2024 $8,783 $8,822 7,463 7,453 1,320 1,369 $12,819 < Prev d 151 344 350 11 Req 3B 6 of 6 0 0 Next >
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