# Times interest earned 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 expense 685,000,000 323,000,000 a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place. b. What conclusions can you draw?

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

#### Solutions

Chapter
Section
Chapter 14, Problem 14.14EX
Textbook Problem

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