(Solution) - The following data have been gathered from the financial statements -(2025 Original AI-Free Solution)

Discipline:

Type of Paper:

Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

Download Solution ($11.00) Write My Paper Afresh

Buy For $11.00

Paper Details

The following data have been gathered from the financial statements of HiFly Corporation:
_______________________2015 ______________2016
Operating profit ....... $550,000,000 ......... $600,000,000
Interest expense ....... $200,000,000 ......... $250,000,000
Taxes ................... $126,000,000 ......... $126,000,000
Net profit .............. $224,000,000 ......... $224,000,000
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?