Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to answer questions () to ) below50 pts ) Windswept , Incorporated 2021 Income Statement in millions) 511,400 Cost of goods

Use the following information to answer questions () to ) below50 pts ) Windswept , Incorporated 2021 Income Statement in millions) 511,400 Cost of goods sold 8,150 Depreciation 440 Earnings before interest and taxes 2,810 Interest paid 108 Taxable income 2,702 Taxes 567 Net income $2,135 2020 2021 Cash Accounts received Inventory Total Net fixed assets Total assets Windswept, Incorporated 2020 and 2021 Balance Sheets 2020 2021 $320 350 Accounts payable 1,1901,090 Long-term debt 2,120 1,805 Common stock $ 3,630 $3,245 Retained earnings 3,560 4,180 7,190 $2,425 Total & equity $1,950 $2,022 1,1101,393 3,440 3,070 690 940 $7,190 $7,425
a. in 2021, a cash dividend of $1,500 was paid What is the addition to the retained earnings( 10 pts)
b. what is the change in the networking capital in 2021
c. What is the net capital spending in 2021
d. using the identity ROE = profit margin x total asset turnover x equity multiplier, what is the ROE in 2021
image text in transcribed
image text in transcribed
PART C: Total pts =60 Use the following information to answer questions (a) to (d) below. 150ntel a. In 2021, a cash dividend of $1,500 was paid. What is the addition to the retained eamings? (10 pts) b. What is the change in the networking capital (NWC) in 2021 ? (10 pts) c. What is the net capital spending in 2021 ? (10 pts) d. Using the identity ROE = Profit margir. x Total asset turnover x Equity multiplier, what is the ROE in 2021?(20pts)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions Management

Authors: Anthony Saunders

1st Edition

0256110565, 9780256110562

More Books

Students also viewed these Finance questions

Question

Employ effective vocal cues Employ effective visual cues

Answered: 1 week ago