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P10-6A Suppose you have been presented with selected information taken from the finan- cial statements...

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P10-6A Suppose you have been presented with selected information taken from the finan- cial statements of Southwest Airlines Co., shown on the next page. Instructions (a) Calculate each of the following ratios for 2017 and 2016. Calculate and comment on ratios. LO 4), AN (1) Current ratio. (2) Free cash flow. (3) Debt to assets ratio. (4) Times interest earned. (b) Comment on the trend in ratios. (c) Read the company's note on leases. If the operating leases had instead been accounted for like a purchase, assets and liabilities would increase by approximately $1,600 mil- lion. Recalculate the debt to assets ratio for 2017 in light of this information, and discuss the implications for analysis

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