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Suppose you have been presented with selected information taken from the financial statements of Southwest Airlines Co., shown below. SOUTHWEST AIRLINES CO. Balance Sheet (partial)
Suppose you have been presented with selected information taken from the financial statements of Southwest Airlines Co., shown below. SOUTHWEST AIRLINES CO. Balance Sheet (partial) December 31 (in millions) 2022 2021 Total current assets $2,755 $4,050 Noncurrent assets 10.050 12.280 Total assets $12.805 $16,330) Current liabilities $2.755 $4.675 Long-term liabilities 6455 5,345 Total liabilities 9.210 10.020 Shareholders' equity 3.595 6.310 Total abilities and shareholders' equity $12.805 $16.330 Net income (loss) Income tax expense 2022 2021 $170 $675 110 395 Interest expense 140 124 Cash provided by operations (1,455) 2,890 Capital expenditures 960 1,345 Cash dividends 20 10 11 (a) Calculate each of the following ratios for 2022 and 2021. Current ratio (Round answers to 2 decimal 1 places, eg 6.25:1) 2 Free cash flow (Enter negative amounts 2 using either a negative sign preceding the number-45 or parenthesis es (45)) Debt to assets ratio (Round answers to 0 decimal places, es 62%) $ 2022 2021 A Times interest earned (Round answers to 2 times times decimal places, eg 625) eTextbook and Media
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