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Use the following information to answer this question. Windswept, Inc. Year 2 Income Statement ($ in millions). Net sales Less: Cost of goods sold sold

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Use the following information to answer this question. Windswept, Inc. Year 2 Income Statement ($ in millions). Net sales Less: Cost of goods sold sold $8,800 EETEE 7,390 Less: Depreciation Earnings before interest and taxes $1,000 Less: Interest paid 84 Taxable income $ 916 Less: Taxes 321 Net income $ 595 410 FEE Teart Year Cash Windswept, Inc Year 1 and Year 2 Balance Sheets ($ in millions). Year 1 2 Year 1 Year 2 $ 160 $ 195 Accounts payable $1,210 210 FEET $ 1,395 Accounts rec. 940 840 Long-term debt 1,010 1,275 Inventory 1,540 1,565 Common stock $3,230 $2,910 Total $ 2,640 $ 2.600 Retained earnings Retained earnings 470 4703 720 Net fixed assets 3,280 3,700 Total assets $5,920 $ 6,300 Total liab. & equity $ 5,920 $ 6,300 PER PERE STELE What is the return on equity for Year 2? (round to the nearest %) 2706 16% 20% 34% 1996

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