Question
Suppose you have been presented with selected information taken from the financial statements of Southwest Airlines Co, shown below SOUTHWEST AIRLINES CO. Balance Sheet
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 $2.830 $4,800 Noncurrent assets 10,800 12.525 Total assets $13.630 $17.325 Current liabilities $2.830 $4,985 Long-term liabilities 6.530 5,490 Total liabilities 9.360 10,475 Shareholders' equity 4,270 6,850 Total liabilities and shareholders' equity $13.630 $17.325 Other information: 2022 2021 Net income (loss) $175 $560 Income tax expense 100 450 Interest expense 135 121 Cash provided by operations (1595) 2.880 Capital expenditures 955 1410 Cash dividends 20 24 (a) Calculate each of the following ratios for 2022 and 2021. Current ratio (Round answers to 2 decimal 1 places, 6.25:1 2 Free cash flow (Enter negative amounts using either a negative sign preceding the number 45 or parenthesh eg 1451) 3 Debt to assets ratio (Round answers to A decimal places, 62%) Times interest earned (Round onwers to 2 decimal places 6.25) 2022 2021 times times
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