FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Problem 9-9A (Algo) Calculate and analyze ratios (LO9-8)
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
Req 1A
Req 1B
Bahama Bay
Req 2A
Complete this question by entering your answers in the tabs below.
Req 2B
Bahama Bay
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.
2024
$9,583
8,022
1,561
$5,847
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?
Debt to Equity Ratio
192
70
317
Numerator/Denominator
2023
$9,502
7,486
2,016
=
Caribbean Key
2023
2024
$8,783
7,463
1,320
$12,819
Req 3A
151
344
350
Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. (Enter your answer in millions
(i.e., $5,500,000 should be entered as 5.5).)
Amounts
$8,822
7,453
1,369
Req 3B
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Transcribed Image Text:Problem 9-9A (Algo) Calculate and analyze ratios (LO9-8) Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions) Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income Req 1A Req 1B Bahama Bay Req 2A Complete this question by entering your answers in the tabs below. Req 2B Bahama Bay 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. 2024 $9,583 8,022 1,561 $5,847 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? Debt to Equity Ratio 192 70 317 Numerator/Denominator 2023 $9,502 7,486 2,016 = Caribbean Key 2023 2024 $8,783 7,463 1,320 $12,819 Req 3A 151 344 350 Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. (Enter your answer in millions (i.e., $5,500,000 should be entered as 5.5).) Amounts $8,822 7,453 1,369 Req 3B
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