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Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 10,200 Less: Cost of goods sold

Use the following information to answer this question.

Windswept, Inc. 2010 Income Statement ($ in millions)
Net sales $ 10,200
Less: Cost of goods sold 7,750
Less: Depreciation

400

Earnings before interest and taxes $ 2,050
Less: Interest paid

92

Taxable Income $ 1,958
Less: Taxes

685

Net income

$ 1,273

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)

2009

2010

2009

2010

Cash $ 240 $ 270 Accounts payable $ 1,630 $ 1,662
Accounts rec. 1,030 930 Long-term debt 1,030 1,313
Inventory

1,880

1,685

Common stock $ 3,280 $ 2,990
Total $ 3,150 $ 2,885 Retained earnings

610

860

Net fixed assets

3,400

3,940

Total assets

$ 6,550

$ 6,825

Total liab. & equity

$ 6,550

$ 6,825

What is the equity multiplier for 2010?

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