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Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 10,000 Cost of goods sold 7,950
Use the following information to answer this question.
Windswept, Inc. 2017 Income Statement ($ in millions) | |||
Net sales | $ | 10,000 | |
Cost of goods sold | 7,950 | ||
Depreciation | 410 | ||
Earnings before interest and taxes | $ | 1,640 | |
Interest paid | 100 | ||
Taxable income | $ | 1,540 | |
Taxes | 539 | ||
Net income | $ | 1,001 | |
Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) | |||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||
Cash | $ | 270 | $ | 300 | Accounts payable | $ | 1,630 | $ | 1,812 | ||||
Accounts rec. | 1,110 | 1,010 | Long-term debt | 1,070 | 1,383 | ||||||||
Inventory | 1,780 | 1,755 | Common stock | 3,360 | 3,030 | ||||||||
Total | $ | 3,160 | $ | 3,065 | Retained earnings | 650 | 900 | ||||||
Net fixed assets | 3,550 | 4,060 | |||||||||||
Total assets | $ | 6,710 | $ | 7,125 | Total liab. & equity | $ | 6,710 | $ | 7,125 | ||||
What is the cash coverage ratio for 2017?
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