Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 8,850 Less: Cost of goods sold
Use the following information to answer this question. |
Windswept, Inc. 2010 Income Statement ($ in millions) | |
Net sales | $ 8,850 |
Less: Cost of goods sold | 7,300 |
Less: Depreciation | 355 |
Earnings before interest and taxes | $ 1,195 |
Less: Interest paid | 85 |
Taxable Income | $ 1,110 |
Less: Taxes | 389 |
Net income | $ 721 |
Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) | |||||
2009 | 2010 | 2009 | 2010 | ||
Cash | $ 150 | $ 180 | Accounts payable | $ 1,110 | $ 1,297 |
Accounts rec. | 820 | 730 | Long-term debt | 990 | 1,223 |
Inventory | 1,540 | 1,550 | Common stock | $ 3,170 | $ 2,900 |
Total | $ 2,510 | $ 2,460 | Retained earnings | 460 | 710 |
Net fixed assets | 3,220 | 3,670 | |||
Total assets | $ 5,730 | $ 6,130 | Total liab. & equity | $ 5,730 | $ 6,130 |
What is the equity multiplier for 2010? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started