Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)

image text in transcribed
image text in transcribed
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 $2,750 $4,000 Noncurrent assets 10,000 12,200 Total assets $12.750 $16,200 Current liabilities $2,750 $4,500 Long-term liabilities 6,450 4.900 Total liabilities 9,200 9,400 Shareholders' equity 3.550 6,800 Total liabilities and shareholders' equity $12,750 $16,200 Other information: 2022 2021 Net income (loss) $150 Income tax expense 100 Interest expense 125 Cash provided by operations (1,400) Capital expenditures 900 Cash dividends 10 (a) Calculate each of the following ratios for 2022 and 2021. $550 350 115 2,700 1,250 11 (a) Calculate each of the following ratios for 2022 and 2021. Current ratio (Round answers to 2 decimal places, eg. 6.25:1.) 1 2 Free cash flow (Enter negative amounts using either a negative sign preceding the number-45 or parenthesis e.g. (45)) Debt to assets ratio (Round answers to O decimal places, e.g.62%) Times interest earned (Round answers to 2 decimal places, e.g.6.25.) 3. 4 2022 :1 times 2021 %6 times

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions