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 $ 12,050 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 $ 12,050 Less: Cost of goods sold 7,800 Less: Depreciation 480 Earnings before interest and taxes $ 3.770 Less: Interest paid 94 Taxable income $ 3,676 Less: Taxes 1.287 Net Income $ 2,389 Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 230 $ 260 Accounts payable $1,700 $ 1,6401 Accounts rec. 1,050 950 Long-term debt 1,0401 1,3601 Inventory 1,910 1,690|Common stock $3,300 $ 3,010 Total $ 3,190 $2,900 Retained earnings 620 870 Net fixed assets 3,4701 3,980 Total assets $ 6,660 $6,880 Total liab. & equity $ 6,660 $6,880 What is the fixed asset turnover? (use 2010 values. hints: fixed asset turnover = saleset fixed assets) O 0.33 3.03 2.25 4.16 O 1.75

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

Investing All In One

Authors: Eric Tyson

1st Edition

1119376629, 978-1119376620

More Books

Students also viewed these Finance questions

Question

SOO URGENT MI 2. TE

Answered: 1 week ago