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Use the following information to answer this question. Thomas Company 2017 Income Statement ($ in millions) Net sales $ 9,530 Cost of goods sold 7,760
Use the following information to answer this question.
| Thomas Company 2017 Income Statement ($ in millions) | |||
| Net sales | $ | 9,530 | |
| Cost of goods sold | 7,760 | ||
| Depreciation | 465 | ||
| Earnings before interest and taxes | $ | 1,305 | |
| Interest paid | 104 | ||
| Taxable income | $ | 1,201 | |
| Taxes | 420 | ||
| Net income | $ | 781 | |
| Thomas Company 2016 and 2017 Balance Sheets ($ in millions) | |||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Cash | $ | 230 | $ | 260 | Accounts payable | $ | 1,370 | $ | 1,385 | ||||
| Accounts rec. | 1,000 | 900 | Long-term debt | 1,100 | 1,300 | ||||||||
| Inventory | 1,810 | 1,695 | Common stock | 3,340 | 3,250 | ||||||||
| Total | $ | 3,040 | $ | 2,855 | Retained earnings | 640 | 890 | ||||||
| Net fixed assets | 3,410 | 3,970 | |||||||||||
| Total assets | $ | 6,450 | $ | 6,825 | Total liab. & equity | $ | 6,450 | $ | 6,825 | ||||
What is the return on equity for 2017?
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
9th Edition
125972266X, 9781259722660
