Problem 9-8A Calculate and analyze ratios (LO9-8)

Selected financial data for Bahama Bay and Caribbean Key are as follows:

($ in millions)	Bahama Bay						Caribbean Key
	2021			2020			2021			2020
Total assets	$	9,583		$	9,502		$	8,783		$	8,822
Total liabilities		8,022			7,486			7,463			7,453
Total stockholders equity		1,561			2,016			1,320			1,369
Sales revenue	$	5,847					$	12,819
Interest expense		192						151
Tax expense		70						344
Net income		317						350

3-a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key. (Do not round intermediate calculations. Round ratios answers to 1 decimal place. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5).)

3-b. Which company is better able to meet interest payments as they become due?

multiple choice 3

• Bahama Bay

• Caribbean Key