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Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 8,900 Cost of goods sold 7,400
Use the following information to answer this question.
Windswept, Inc. 2017 Income Statement ($ in millions) | |||
Net sales | $ | 8,900 | |
Cost of goods sold | 7,400 | ||
Depreciation | 355 | ||
Earnings before interest and taxes | $ | 1,145 | |
Interest paid | 91 | ||
Taxable income | $ | 1,054 | |
Taxes | 369 | ||
Net income | $ | 685 | |
Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) | |||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||
Cash | $ | 160 | $ | 190 | Accounts payable | $ | 1,240 | $ | 1,447 | ||||
Accounts rec. | 960 | 860 | Long-term debt | 1,040 | 1,273 | ||||||||
Inventory | 1,560 | 1,590 | Common stock | 3,250 | 2,920 | ||||||||
Total | $ | 2,680 | $ | 2,640 | Retained earnings | 480 | 730 | ||||||
Net fixed assets | 3,330 | 3,730 | |||||||||||
Total assets | $ | 6,010 | $ | 6,370 | Total liab. & equity | $ | 6,010 | $ | 6,370 | ||||
What is the cash coverage ratio for 2017?
Group of answer choices
A) 7.89 times
B) 3.48 times
C) 2.09 times
D) 16.48 times
E) 12.58 times
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