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A. Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 10,400 Less: Cost of goods
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?
|
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