Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 8,900 Less: Cost of goods sold

Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 8,900 Less: Cost of goods sold 7,440 Less: Depreciation 415 Earnings before interest and taxes $ 1,045 Less: Interest paid 86 Taxable Income $ 959 Less: Taxes 336 Net income $ 623 Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 170 $ 205 Accounts payable $ 1,240 $ 1,440 Accounts rec. 960 860 Long-term debt 1,020 1,285 Inventory 1,560 1,580 Common stock $ 3,250 $ 2,920 Total $ 2,690 $ 2,645 Retained earnings 480 730 Net fixed assets 3,300 3,730 Total assets $ 5,990 $ 6,375 Total liab. & equity $ 5,990 $ 6,375 What is the return on equity for 2010?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started