The following data have been gathered from the financial statements of HiFly Corporation: _________2015 2016 Operating profit

Question:

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?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...