Selected financial data for these two close competitors in the home building industry are provided below: ($ in millions) Company A Company B Total assets $40,930 $33,000 Total liabilities 21,500 13,990 Total stockholders' equity 19,430 19,010 Sales $66,174 $47,240 Interest expense 700 350 Tax expense 1,390 1,070 Net income 2,610 1,790 1-a. Calculate the debt to equity ratio for Company A and Company B. (Round your answers to 2 decimal places.) Debt to Equity Ratio Company A Company B 1-b. Which company has the higher ratio? Company A Company B 2-a. Calculate the times interest earned ratio for Company A and Company B. (Round your answers to 1 decimal place.) Time Interest Earned Ratio Company A times Company B times 2-b. Which company is better able to meet interest payments as they become due? Company A Company B

Selected financial data for these two close competitors in the home building industry are provided below: ($ in millions) Company A Company B Total assets $40,930 $33,000 Total liabilities 21,500 13,990 Total stockholders' equity 19,430 19,010 Sales $66,174 $47,240 Interest expense 700 350 Tax expense 1,390 1,070 Net income 2,610 1,790 1-a. Calculate the debt to equity ratio for Company A and Company B. (Round your answers to 2 decimal places.) Debt to Equity Ratio Company A Company B 1-b. Which company has the higher ratio? Company A Company B 2-a. Calculate the times interest earned ratio for Company A and Company B. (Round your answers to 1 decimal place.) Time Interest Earned Ratio Company A times Company B times 2-b. Which company is better able to meet interest payments as they become due? Company A Company B

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3MC: The following is selected financial data from Block Industries: How much does Block Industries have...

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The following is selected financial data from Block Industries: How much does Block Industries have in current liabilities? A. $19,800 B. $18,300 C. $12,300 D. $25,800
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Selected information for two companies competing in the catering industry have been presented below. Account A Ltd B Ltd Current assets $55250 $83950 Non-current assets $125000 $149500 Current Liabilities $29300 $11750 Non-current Liabilities $44850 $72500 Equity $106100 $149200 Profit $37500 $26500 Required: A. Calculate the following ratios for A Ltd and B Ltd: i. Current ratio. ii.Return on Assets (ROA). iii. return on equity (ROE). B. From your calculations part A, explain which entity is in a more favourable position.
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bartleby, a Learneo, Inc. business

($ in millions)	Company A	Company B
Total assets	$40,930	$33,000
Total liabilities	21,500	13,990
Total stockholders' equity	19,430	19,010

Sales	$66,174	$47,240
Interest expense	700	350
Tax expense	1,390	1,070
Net income	2,610	1,790