Question: Exercise 14-10 Exercise 14-10 (Part Level Submission) Shown below are solvency ratios for three companies. Company #1 Company #2 2018 2017 2018 2017 2018 2017

Exercise 14-10 Exercise 14-10 Exercise 14-10 (Part Level Submission) Shown below are solvency

Exercise 14-10 (Part Level Submission) Shown below are solvency ratios for three companies. Company #1 Company #2 2018 2017 2018 2017 2018 2017 30.3% 42.1% 59.8% 48.2% 54.3% 33.4% Company #3 Debt to total assets Times interest earned Free cash flow (in millions) 4.2 times 2.9 times 1.9 times 3.2 times 5.1 times 3 s 3.2 times 5.1 times 3.7 times 75 41 65 75 92 67 For each of the following questions, choose the appropriate company by referring to the ratios shown above Which company was concerned about its high debt levels and high interest expense and took steps to reduce that debt

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