Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions) Total...
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Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions) Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Bahama Bay 2024 $9,683 8,072 1,611 $5,897 207 75 327 2023 $9,602 7,536 2,066 Caribbean Key 2023 2024 $8,883 7,513 1,370 $12,869 161 349 360 $8,922 7,503 1,419 Required: 1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. 1-b. Which company has the higher ratio? 2-a. Calculate the return on assets for Bahama Bay and Caribbean Key for the most recent year. 2-b. Which company appears more profitable? 3-a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year. 3-b. Which company is better able to meet interest payments as they become due? Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions) Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Bahama Bay 2024 $9,683 8,072 1,611 $5,897 207 75 327 2023 $9,602 7,536 2,066 Caribbean Key 2023 2024 $8,883 7,513 1,370 $12,869 161 349 360 $8,922 7,503 1,419 Required: 1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. 1-b. Which company has the higher ratio? 2-a. Calculate the return on assets for Bahama Bay and Caribbean Key for the most recent year. 2-b. Which company appears more profitable? 3-a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year. 3-b. Which company is better able to meet interest payments as they become due?
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SOLUTION 1a The debt to equity ratio is calculated as total liabilities divided by total stockholder... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
Posted Date:
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