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Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,400 Cost of goods sold 7,650
Use the following information to answer this question.
Windswept, Inc. 2017 Income Statement ($ in millions) | |||
Net sales | $ | 9,400 | |
Cost of goods sold | 7,650 | ||
Depreciation | 440 | ||
Earnings before interest and taxes | $ | 1,310 | |
Interest paid | 88 | ||
Taxable income | $ | 1,222 | |
Taxes | 428 | ||
Net income | $ | 794 | |
Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) | |||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||
Cash | $ | 220 | $ | 255 | Accounts payable | $ | 1,490 | $ | 1,595 | ||||
Accounts rec. | 990 | 890 | Long-term debt | 1,010 | 1,335 | ||||||||
Inventory | 1,660 | 1,655 | Common stock | 3,240 | 2,970 | ||||||||
Total | $ | 2,870 | $ | 2,800 | Retained earnings | 530 | 780 | ||||||
Net fixed assets | 3,400 | 3,880 | |||||||||||
Total assets | $ | 6,270 | $ | 6,680 | Total liab. & equity | $ | 6,270 | $ | 6,680 | ||||
What is the return on equity for 2017?
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