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mrs_skeptik [129]
3 years ago
5

Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) E-Travel P

ricecheck Total assets $ 5,337,156 $ 1,730,224 Total liabilities 2,854,475 472,610 Total stockholders’ equity 2,482,681 1,257,614 Sales revenue $ 2,755,426 $ 2,138,212 Interest expense 80,233 20,084 Tax expense 146,400 43,168 Net income 291,526 481,472 Required: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Enter dollar answers using amounts given in thousands of dollars and round ratios to 2 decimal places.)
Business
1 answer:
svlad2 [7]3 years ago
4 0

Answer:

E-travel-1.15

Pricecheck-0.38

Explanation:

Debt to equity ratio compares the finance provided by outsiders viz-a-viz that which is provided by the original owners of the company,the shareholders, in order to determine whether or not the company is at risk of slow growth if outsiders withdraw their funds.

Debt to equity=total liabilities/equity

E-Travel:

total liabilities is $2,854,475

total equity $2,482,681

debt-equity ratio=$2,854,475/$2,482,681=1.15

Debtholders provided more capital funding than the stockholders

Pricecheck:

total liabilities is $472,610

total equity is $1,257,614

debt-to-equity ratio=$472,610/$1,257,614 =0.38

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Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 134,000 kites (the local curren
Mama L [17]

Answer: Please refer to Explanation

Explanation:

1 October 2017

No entry required as contract not yet exercised

31st December 2017

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CR Translation Adjustment $2,200

(To record change in value of forward contract )

31st December 2017

DR Foreign Currency (Kites) (220,000*0.66) $145,200

CR Cash $145,200

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31st December 2017

DR Cash ( 145,200 + 2,200) $147,400

CR Foreign Currency (Kites) $145,200

CR Forward Contract $2,200

(To record delivery of foreign currency and forward contract execution)

3 0
3 years ago
On January 1, Year 1, Zero Company obtained a $52,000, 4-year, 6.5% installment note from Regional Bank. The note requires annua
Gnom [1K]

Answer:

$ 11,799 is the principal balance of the note payable.

Explanation:

The  Interest expense for the installment note on the year of the December 31, year can be determined by the following equation that are mention below

= 52,000 * 6.5\ percent

52,000 * \frac{6.5}{100}

= $\ 3,380

Now the Principal balance  of the component in $15,179 payment of the  December 31, year 1  can be determined by the

principal\  and \ interest\ of \ note\ annual\  payments -   Interest\ expense \ for\  the\  installment\   note

= 15,179 -3,380

=$ 11,799

5 0
2 years ago
Employers cite dressing inappropriately as one of the biggest mistakes job applicants make in interviews. True or False
IrinaK [193]

Answer:

True

Explanation:

If you dress inappropriately, that is not showing a good first impression. Most, if not all jobs want to have employees that can dress well, cooperate, and work well with others.

6 0
3 years ago
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