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Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: E-Travel $ 6,537,156 3,654,475 2,882,681 $ 3,155,426 88,233 Pricecheck $ 1,938,224 480,610 1,457,614 $ 2,538,212 162,400 307,526 Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Required: 28,084 51,168 497,472 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?

Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: E-Travel $ 6,537,156 3,654,475 2,882,681 $ 3,155,426 88,233 Pricecheck $ 1,938,224 480,610 1,457,614 $ 2,538,212 162,400 307,526 Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Required: 28,084 51,168 497,472 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?

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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Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Pricecheck $ 1,938,224 E-Travel $ 6,537,156 3,654,475 2,882,681 $ 3,155,426 Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Required: Req la 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? Complete this question by entering your answers in the tabs below. E-Travel Pricecheck Req 1b Calculate the debt to equity ratio for E-Travel and Pricecheck. (Round ratios to 2 decimal places.) Debt to Equity Ratio Total asset Total liabilities Total stockholders' equity Sales revenue Required: Numerator/Denominator Interest expense Income tax expense Net income Req 2a Req la 88,233 162,400 307,526 Req 1b Req 2b Req 2a Req 1a Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: E-Travel $ 6,537,15 480,610 1,457,614 $ 2,538,212 3,654,475 2,882,681 $ 3,155,426 88,233 162,400 307,526 Which company has higher leverage risk? Which company has higher leverage risk? 28,084 51,168 497,472 Complete this question by entering your answers in the tabs below. Req 2b Amounts 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? < Req 1a Req 1b > Pricecheck $ 1,9 8,224 480, 610 1,457,614 $ 2,538,212 28,084 51,168 497,472 0 0 Req 2a >
Transcribed Image Text:Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Pricecheck $ 1,938,224 E-Travel $ 6,537,156 3,654,475 2,882,681 $ 3,155,426 Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Required: Req la 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? Complete this question by entering your answers in the tabs below. E-Travel Pricecheck Req 1b Calculate the debt to equity ratio for E-Travel and Pricecheck. (Round ratios to 2 decimal places.) Debt to Equity Ratio Total asset Total liabilities Total stockholders' equity Sales revenue Required: Numerator/Denominator Interest expense Income tax expense Net income Req 2a Req la 88,233 162,400 307,526 Req 1b Req 2b Req 2a Req 1a Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: E-Travel $ 6,537,15 480,610 1,457,614 $ 2,538,212 3,654,475 2,882,681 $ 3,155,426 88,233 162,400 307,526 Which company has higher leverage risk? Which company has higher leverage risk? 28,084 51,168 497,472 Complete this question by entering your answers in the tabs below. Req 2b Amounts 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? < Req 1a Req 1b > Pricecheck $ 1,9 8,224 480, 610 1,457,614 $ 2,538,212 28,084 51,168 497,472 0 0 Req 2a >
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Pricecheck $ 1,938,224 E-Travel $6,537,156 3,654,475 2,882,681 $ 3,155,426 480,610 1,457,614 $ 2,538,212 Total assets Total liabilities. Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Required: 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? Req la Complete this question by entering your answers in the tabs below. E-Travel Pricecheck Req 1b. Calculate the times interest earned ratio for E-Travel and Pricecheck. (Round ratios to 1 decimal place.) Interest expense Income tax expense Net income Required: Req 2a Total assets Total liabilities Total stockholders' equity Sales revenue 88,233 162,400 307,526 Req la Req 2b Req 1b Numerator/Denominator Times Interest Earned Ratio Req 2a < Req 1b 28,084 51,168 497,472 Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: E-Travel $ 6,537,156 3,654,475 2,882,681 $ 3,155,426 88,233 162,400 307,526 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? Req 2b Req 2b > Complete this question by entering your answers in the tabs below. Amounts Pricecheck $ 1,938,224 480,610 1,457,614 $ 2,538,212 < Req 2a 28,084 51,168 497,472 Which company is better able to meet interest payments as they become due? Which company is better able to meet interest payments as they become due? = Req 2b > 0 0
Transcribed Image Text:Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Pricecheck $ 1,938,224 E-Travel $6,537,156 3,654,475 2,882,681 $ 3,155,426 480,610 1,457,614 $ 2,538,212 Total assets Total liabilities. Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Required: 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? Req la Complete this question by entering your answers in the tabs below. E-Travel Pricecheck Req 1b. Calculate the times interest earned ratio for E-Travel and Pricecheck. (Round ratios to 1 decimal place.) Interest expense Income tax expense Net income Required: Req 2a Total assets Total liabilities Total stockholders' equity Sales revenue 88,233 162,400 307,526 Req la Req 2b Req 1b Numerator/Denominator Times Interest Earned Ratio Req 2a < Req 1b 28,084 51,168 497,472 Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: E-Travel $ 6,537,156 3,654,475 2,882,681 $ 3,155,426 88,233 162,400 307,526 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? Req 2b Req 2b > Complete this question by entering your answers in the tabs below. Amounts Pricecheck $ 1,938,224 480,610 1,457,614 $ 2,538,212 < Req 2a 28,084 51,168 497,472 Which company is better able to meet interest payments as they become due? Which company is better able to meet interest payments as they become due? = Req 2b > 0 0
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