The following data were taken from recent annual reports of Southwest Airlines, which operates a low-fare airline service to more than 50 cities in the United States: Current Year Prior Year Interest expense $147,000,000 $194,000,000 Income before income tax 323,000,000 685,000,000 a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place. What conclusions can you draw? b.

The following data were taken from recent annual reports of Southwest Airlines, which operates a low-fare airline service to more than 50 cities in the United States: Current Year Prior Year Interest expense $147,000,000 $194,000,000 Income before income tax 323,000,000 685,000,000 a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place. What conclusions can you draw? b.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2E: The following comparative income statement (in thousands of dollars) for two recent fiscal years was...

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