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Number of Times Interest Charges are Earned The following data were taken from recent annual reports of Southwest Airlines, which operates a low-fare airline service
Number of Times Interest Charges are 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 Preceding Year $147,000,000 $194,000,000 Interest expense Income before incometax 685,000,000 323,000,000 a. Determine the number of times interest charges are earned for the current and preceding years. Round to one decimal place Current year Preceding year b. Although Southwest Airlines had enough earnings to pay interest in the preceding year, the impovementVin this ratio will be welcomed V by the debtholders
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