The Following Information Was Taken from the Statement of Earnings

question 29

Essay

The following information was taken from the statement of earnings of The W D Company for the years 20X0 through 20X2 (in millions): $$\begin{array} { | l | r | r | r | } \hline & \underline { \mathbf { 2 0 X 2 } } & \underline { \mathbf { 2 0 X 1 } } & \underline { \mathbf { 2 0 X 0 } } \\\hline \text { Interest expense } & \mathbf { \$ 6 1 2 } & \mathbf { \$ 6 2 } & \mathbf { \$ 6 9 3 } \\\hline \text { Income taxes } & 1,104 & 1,397 & 1,421 \\\hline \text { Profit } & 1,300 & 1,850 & 1,966 \\\hline\end{array}$$ (1) Calculate the times interest earned ratio for 20X0 through 20X2. (2) Comment on the sufficiency of the ratio.

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Definitions:

Environmental Conditions

The various physical and biological factors that affect an organism's living and working surroundings.

Recruiting Function

The process or actions involved in identifying, attracting, interviewing, selecting, hiring, and onboarding employees in an organization.

External Factor

Influences originating outside of an organization that can affect its performance, such as economic conditions, competition, or regulatory changes.

Offers-applicants Ratio

The ratio of job offers given to the number of applicants, indicating the selectiveness or competitiveness of the hiring process.