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Q7 The following data have been gathered from the financial statements of HiFly Corporation: 2015 2016 Operating profit 575,000,000 644,000,000 Interest expense 203,000,000 257,000,000 Taxes

Q7

The following data have been gathered from the financial statements of HiFly Corporation:

2015 2016 Operating profit 575,000,000 644,000,000 Interest expense 203,000,000 257,000,000 Taxes 133,920,000 139,320,000 Net profit 238,080,000 247,680,000

. Calculate the times interest earned ratios for 2015 and 2016 . Is the company more or less able to meet its interest payments in 2016 when measured this way?

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