Question
Use the following information to answer this question. Windswept, Inc. Year 2 Income Statement ($ in millions) Net Sales $9,300 Less: Cost of goods sold
- Use the following information to answer this question.
Windswept, Inc. Year 2 Income Statement ($ in millions) | |
Net Sales | $9,300 |
Less: Cost of goods sold | 7,440 |
Less: Depreciation | 310 |
Earnings before interest and taxes | 1,550 |
Less: Interest Paid | 89 |
Taxable Income | 1,461 |
Less: taxes | 438 |
Net Income | 1,023 |
Windswept, Inc Year 1 and Year 2 Balance Sheets ($ in millions) | |||||
| Year 1 | Year 2 |
| Year 1 | Year 2 |
Cash | $250 | $265 | Accounts Payable | $1,410 | $1,545 |
Accounts Receivable | 1,040 | 940 | Long-term debt | 1,140 | 1,410 |
Inventory | 1,640 | 1,650 | Common Stock | 3,300 | 3,020 |
Total | 2,930 | 2,855 | Retained Earnings | 470 | 720 |
Net Fixed Assets | 3,390 | 3,840 |
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|
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Total Assets | 6,320 | 6,695 | Total Liability & Equity | 6,320 | 6,695 |
What amount of dividends paid should be included in the financing section of the Year 2 statement of cash flows.
- $595 million
- $455 million
- $758 million
- $773 million
- $250 million
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