A.

Use the following information to answer this question.

Windswept, Inc. 2010 Income Statement ($ in millions)
Net sales	$ 10,400
Less: Cost of goods sold	8,150
Less: Depreciation	490
Earnings before interest and taxes	$ 1,760
Less: Interest paid	108
Taxable Income	$ 1,652
Less: Taxes	578
Net income	$ 1,074

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)
	2009	2010		2009	2010
Cash	$ 320	$ 355	Accounts payable	$ 1,730	$ 1,985
Accounts rec.	1,190	1,090	Long-term debt	1,110	1,435
Inventory	1,860	1,805	Common stock	$ 3,440	$ 3,070
Total	$ 3,370	$ 3,250	Retained earnings	690	940
Net fixed assets	3,600	4,180
Total assets	$ 6,970	$ 7,430	Total liab. & equity	$ 6,970	$ 7,430

What is the return on equity for 2010?

B.

Papa Roach Exterminators, Inc., has sales of $649,000, costs of $285,000, depreciation expense of $43,000, interest expense of $33,000, and a tax rate of 40 percent. If the firm paid out $74,000 in cash dividends. What is the addition to retained earnings?

C.

The present value of the following cash flow stream is $6,715 when discounted at 7 percent annually.

Year	Cash Flow
1	$1,350
2	?
3	1,650
4	2,250

Required:

What is the value of the missing cash flow?