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

Required:
1. Calculate the debt to equity ratio for Surf City and Paradise Falls for the most recent year. Which company has the higher ratio?
2. Calculate the return on assets for Surf City and Paradise Falls. Which company appears more profitable?
3. Calculate the times interest earned ratio for Surf City and Paradise Falls. Which company is better able to meet interest payments as they become due?

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($ in millions) Surf City Paradise Falls 2018 2017 2018 2017 $19,828 $19,804 $39,161 $38,637 14,805 8,309 8,408 23,929 23,832 Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Tax expense Net income 11,519 11,396 15,232 $ 7,688 356 $15,382 336 4 1,298 18