Question
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 10,850 Cost of goods sold 7,600
Use the following information to answer this question.
Windswept, Inc. 2017 Income Statement ($ in millions) | |||
Net sales | $ | 10,850 |
|
Cost of goods sold |
| 7,600 |
|
Depreciation |
| 460 |
|
Earnings before interest and taxes | $ | 2,790 |
|
Interest paid |
| 96 |
|
Taxable income | $ | 2,694 |
|
Taxes |
| 943 |
|
Net income | $ | 1,751 |
|
Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) | |||||||||||||
|
| 2016 |
|
| 2017 |
|
|
| 2016 |
|
| 2017 |
|
Cash | $ | 190 |
| $ | 220 |
| Accounts payable | $ | 1,440 |
| $ | 1,430 |
|
Accounts rec. |
| 970 |
|
| 870 |
| Long-term debt |
| 1,000 |
|
| 1,320 |
|
Inventory |
| 1,720 |
|
| 1,630 |
| Common stock |
| 3,220 |
|
| 2,970 |
|
Total | $ | 2,880 |
| $ | 2,720 |
| Retained earnings |
| 610 |
|
| 860 |
|
Net fixed assets |
| 3,390 |
|
| 3,860 |
|
|
|
|
|
|
|
|
Total assets | $ | 6,270 |
| $ | 6,580 |
| Total liab. & equity | $ | 6,270 |
| $ | 6,580 |
|
What is the fixed asset turnover for 2017?
2.24 times
.36 times
1.65 times
3.99 times
2.81 times
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