The income statements for Home Depot, Inc. (HD) spanning the period 20062008 (just before the housing crash,

The income statements for Home Depot, Inc. (HD) spanning the period 2006–2008 (just before the housing crash, so these are representative years) are as follows:

a. Calculate the times interest earned ratio for each of the years for which you have data.
b. What is your assessment of how the firm’s ability to service its debt obligations has changed over thisperiod?

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2008 2007 2006 Earnings before interest and taxes Interest expense Income before tax Income tax expense Net income $7,316,0009,700,000 $9,425,000 (696,000) (392,000) 143,000) $6,620,00 9,308,000 9,282,000 (2,410,000 (3,547,000) (3,444,000) $4,210,00 5,7610005838,000