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Use the following information to answer this question. Windswept, Inc. Year 2 Income Statement ($ in millions) Net Sales $10,550 Less: Cost of goods sold

  1. Use the following information to answer this question.

Windswept, Inc. Year 2 Income Statement ($ in millions)

Net Sales

$10,550

Less: Cost of goods sold

7,550

Less: Depreciation

455

Earnings before interest and taxes

2,545

Less: Interest Paid

94

Taxable Income

2,451

Less: taxes

858

Net Income

1,593

Windswept, Inc Year 1 and Year 2 Balance Sheets ($ in millions)

Year 1

Year 2

Year 1

Year 2

Cash

$180

$210

Accounts Payable

$1,360

$1,385

Accounts Receivable

950

850

Long-term debt

1,030

1,310

Inventory

1,690

1,615

Common Stock

3,200

2,960

Total

2,820

2,675

Retained Earnings

600

850

Net Fixed Assets

3,370

3,830

Total Assets

6,190

6,505

Total Liability & Equity

6,190

6,505

What is the fixed asset turnover? (Use Year 2 values, not an average)

  1. 3.94
  2. 2.75
  3. 1.62
  4. 2.24
  5. 0.36

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