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Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 10,800 Less: Cost of goods sold

Use the following information to answer this question.

Windswept, Inc. 2010 Income Statement ($ in millions)
Net sales $ 10,800
Less: Cost of goods sold 7,950
Less: Depreciation

420

Earnings before interest and taxes $ 2,430
Less: Interest paid

100

Taxable Income $ 2,330
Less: Taxes

816

Net income

$ 1,514

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)

2009

2010

2009

2010

Cash $ 280 $ 310 Accounts payable $ 1,790 $ 1,842
Accounts rec. 1,110 1,010 Long-term debt 1,070 1,353
Inventory

2,000

1,745

Common stock $ 3,360 $ 3,030
Total $ 3,390 $ 3,065 Retained earnings

650

900

Net fixed assets

3,480

4,060

Total assets

$ 6,870

$ 7,125

Total liab. & equity

$ 6,870

$ 7,125

What is the equity multiplier for 2010?

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