The Following Information Was Taken from the Statement of Earnings

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.