Question
The following data have been gathered from the financial statements of HiFly Corporation:(Click on the icon located on the top-right corner of the data table
The following data have been gathered from the financial statements of HiFly Corporation:(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)
2015 |
2016
| |
Operating profit | $486 comma 000 comma 000 |
$530 comma 000 comma 000
Interest expense | 163 comma 000 comma 000 |
213 comma 000 comma 000
Taxes | 116 comma 280 comma 000 |
114 comma 120 comma 000
Net profit | 206 comma 720 comma 000 |
202 comma 880 comma 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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