Question
Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 10,050 Less: Cost of goods sold
Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 10,050 Less: Cost of goods sold 7,700 Less: Depreciation 395 Earnings before interest and taxes $ 1,955 Less: Interest paid 90 Taxable Income $ 1,865 Less: Taxes 653 Net income $ 1,212 Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 230 $ 260 Accounts payable $ 1,590 $ 1,617 Accounts rec. 1,010 910 Long-term debt 1,020 1,303 Inventory 1,850 1,670 Common stock $ 3,260 $ 2,980 Total $ 3,090 $ 2,840 Retained earnings 600 850 Net fixed assets 3,380 3,910 Total assets $ 6,470 $ 6,750 Total liab. & equity $ 6,470 $ 6,750 What is the equity multiplier for 2010?
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