Delta Airlines is one of the largest airlines in the United States. It has operated on the verge of

bankruptcy for several years.

Year 1 Year 0

Sales $13,879 $15,637

Net Income (Loss) before Interest and Taxes ($1,365) $1,829

Interest Expense $499 $380

Net Income (Loss) ($1,216) $828

Total Assets $23,605 $21,931

Current Liabilities $6,403 $5,245

Long-Term Debt $7,781 $5,797

Total Liabilities $19,581 $16,354

Retained Earnings (Deficit) $2,930 $4,176

Shareholders' Equity $4,024 $5,577

1. Times Interest Earned for Year 0 was:_________

A. 3.2

B. 4.8

C. 2.2

D. 3.8

2. Long-Term Debt to Total Capital for Year 1 was:__________

A. 83.0%

B. 65.9%

C. 193.4%

D. 165.9%