Open Text Corporation's financial statements contain the following selected data (in U.S. $ millions):
_______________________2015______________2014
Total assets.........................$4,388.........................$3,900
Total liabilities......................2,559...........................2,258
Net income..............................234..............................218
Income tax expense...................32...............................58
Interest expense.........................55...............................28
Instructions
(a) Calculate the debt to total assets and times interest earned ratios for 2015 and 2014. Did Open Text's solvency improve or deteriorate in 2015?
(b) The notes to Open Text's financial statements show that the company has an operating line of credit (credit facility) of $300 million that can be drawn on at any time and repaid at any time. However, no portion of this credit facility has been drawn on. What does this mean and how is this shown in the financial statements?