Question
Use the following information to answer this question. Windswept, Inc. Year 2 Income Statement ($ in millions) Net Sales $10,550 Less: Cost of goods sold
- Use the following information to answer this question.
Windswept, Inc. Year 2 Income Statement ($ 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)
- 3.94
- 2.75
- 1.62
- 2.24
- 0.36
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