Question: Shown below are data from recent reports of two toy makers. Dollar amounts are stated in thousands. a. Compute for each company (1) The debt

Shown below are data from recent reports of two toy makers. Dollar amounts are stated in thousands.

a. Compute for each company
(1) The debt ratio and
(2) The interest coverage ratio.
b. In your opinion, which of these companies would a long-term creditor probably view as the safer investment?Explain.

Toyco Playco Total assets . . .. Total liabilities Interest expense . Operating income $615,132 $2,616,388 349,792 1,090,776 37,588 304,672 28,026 13,028

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