Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands)...
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Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) E-Travel $4,737,156 2,454,475 2, 282,681 Pricecheck $1,626, 224 468,610 1,157,614 Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Tax expense Net income $2,555,426 76,233 138, 400 283,526 $1,938, 212 16, 884 39, 168 473,472 Requlred: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Enter dollar answers In thousands of dollars and r decimal places.) Answer is not complete. Debt to Equity Ratio Total liabilities Total stockholders' equity E-Travel 1.08 O 2,454 2,283 Debt to Equity Ratio Total liabilities Total stockholders' equity Pricecheck 460 1,158 1-b. Which company has the higher ratio? E-Travel O O Pricecheck 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. (Enter dollar answers In thousands of dollars and round ratlos to 1 declmal place.) Answer is not complete. Times Interest Earned Ratio Net income + Interest expense + Taxt expense Interest expense E-Travel 6.5 498 8 IS 76 Times Interest Earned Ratio Net income + Interest Interest expense Pricecheck expense + Taxx expense 329 529 16 8 2-b. Which company is better able to meet Interest payments as they become due? E-Travel Pricecheck O Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) E-Travel $4,737,156 2,454,475 2, 282,681 Pricecheck $1,626, 224 468,610 1,157,614 Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Tax expense Net income $2,555,426 76,233 138, 400 283,526 $1,938, 212 16, 884 39, 168 473,472 Requlred: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Enter dollar answers In thousands of dollars and r decimal places.) Answer is not complete. Debt to Equity Ratio Total liabilities Total stockholders' equity E-Travel 1.08 O 2,454 2,283 Debt to Equity Ratio Total liabilities Total stockholders' equity Pricecheck 460 1,158 1-b. Which company has the higher ratio? E-Travel O O Pricecheck 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. (Enter dollar answers In thousands of dollars and round ratlos to 1 declmal place.) Answer is not complete. Times Interest Earned Ratio Net income + Interest expense + Taxt expense Interest expense E-Travel 6.5 498 8 IS 76 Times Interest Earned Ratio Net income + Interest Interest expense Pricecheck expense + Taxx expense 329 529 16 8 2-b. Which company is better able to meet Interest payments as they become due? E-Travel Pricecheck O
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ANSW ER la Debt to fouity Ratio Total diableites Total stockholde Euity Travel ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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