The following data were taken from recent annual reports of Southwest Airlines, whichoperates a low-fare airline service to more than 50 cities in the United States:Current YearPrior YearInterest expense$147,000,000$194,000,000Income before income tax323,000,000685,000,000a. Determine the times interest earned ratio for the current and preceding years. Roundto one decimal place.What conclusions can you draw?b.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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16 )
8A. During the current year, Sokowski Manufacturing earned income of $342,385 from total sales of $6,375,343 and average capital assets of $10,106,928. What is the asset turnover? Round to the nearest to the hundredth, two decimal places and submit the answer in a percentage.
d
A company reports the following income statement and balance sheet information for the current year: Net income $132,370 Interest expense 11,510 Average total assets 2,180,000 Determine the return on total assets. Round the percentage to one decimal place.fill in the blank %
Times Interest Earned The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States: Current Year Prior Year Interest expense $51,000 $56,000 Income before income tax expense 173,400 100,800 a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place. Current year Prior year b. Although Caliber Company had enough earnings to pay interest in the prior year, the in this ratio will be by the debtholders.
s
Selected income statement data follow for Harper, Inc., for the year ended December 31 (in thousands). What is the company's times interest earned ratio? Operating income before interest Interest expense Operating income after interest Income tax Income after tax 35.6 30.6 11.2 24.4 6,617 189 6.428 1,607 4,821
How many days is the average collection period ahd what is the current ratio?
Payton Company has the following segment revenues for the two most recent years. Segment United States Canada Other countries Total revenues Prepare a horizontal analysis of the segment data. Calculate the percentage to four decimal places, then round your answer to one decimal place. For amount or percentage decreases, enter a minus sign. Segment United States Canada Other countries Current Year (in millions) Prior Year (in millions) $835 $635 328 348 214 163 $1,377 $1,146 Total revenues Payton Company Horizontal Analysis Current Year Prior Year Amount Increase Percent Increase (in millions) (in millions) (Decrease) $835 $635 $ 328 348 214 163 $1,377 $1,146 (Decrease) %
A company's income before interest expense and income taxes is $425,000, and its interest expense is $115,000. Its times interest earned ratio is: Multiple Choice 7.40 0.27 343 2.43 3.70
The following information was taken from the financial statements of Sunland Company: 2021 2020 Gross profit on sales $678,600 $760,000 Income before income taxes 205,400 225,000 Net income 260,000 225,000 Net income as a percentage of net sales 10% 9% Please show steps to finding answer Compute the cost of goods sold in dollars and as a percentage of net sales for each year. (Round percentages to 1 decimal place, e.g. 15.2%) 2021 2020 Cost of goods sold in dollars $enter a dollar amount $enter a dollar amount Cost of goods sold as a percentage of net sales nter percentages rounded to 1 decimal place % nter percentages rounded to 1 decimal place %
Here is the operating data for Yalis Cleaning, Inc.: After analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenue as the base amount. Round percentages to two decimal places.

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