Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 10,300 Cost of goods sold 8,100
Use the following information to answer this question.
Windswept, Inc. 2017 Income Statement ($ in millions) | |||
Net sales | $ | 10,300 | |
Cost of goods sold | 8,100 | ||
Depreciation | 425 | ||
Earnings before interest and taxes | $ | 1,775 | |
Interest paid | 106 | ||
Taxable income | $ | 1,669 | |
Taxes | 584 | ||
Net income | $ | 1,085 | |
Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) | |||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||
Cash | $ | 300 | $ | 330 | Accounts payable | $ | 1,720 | $ | 1,947 | ||||
Accounts rec. | 1,170 | 1,070 | Long-term debt | 1,100 | 1,413 | ||||||||
Inventory | 1,840 | 1,800 | Common stock | 3,420 | 3,060 | ||||||||
Total | $ | 3,310 | $ | 3,200 | Retained earnings | 680 | 930 | ||||||
Net fixed assets | 3,610 | 4,150 | |||||||||||
Total assets | $ | 6,920 | $ | 7,350 | Total liab. & equity | $ | 6,920 | $ | 7,350 | ||||
What is the cash coverage ratio for 2017?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started