Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 9,500 Less: Cost of goods sold

image text in transcribed

Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 9,500 Less: Cost of goods sold 7,700 Less: Depreciation 385 Earnings before interest and taxes $ 1,415 Less: Interest paid 901 Taxable income $ 1,325 Less: Taxes 4641 Net income $ 8611 Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 220 $ 250 Accounts payable $ 1,480 $ 1,587 Accounts rec. 1,0101 910 Long-term debt 1,020 1,333 Inventory 1,6801 1,680 Common stock $ 3,260 $ 2,980 Total $ 2,910 $ 2,840 Retained earnings 600 850 Net fixed assets 3,450 3,910 Total assets $ 6,360 $ 6,750 Total liab. & equity$ 6,360 $ 6,750 What is the cash coverage ratio for 2010

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 management theory and practice

Authors: Eugene F. Brigham and Michael C. Ehrhardt

13th edition

1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099

More Books

Students also viewed these Finance questions