Question
Use the following information to answer this question: Windswept, Incorporated 2021 Income Statement ($ in millions) Net sales $ 10,500 Cost of goods sold 8,200
Use the following information to answer this question:
Windswept, Incorporated 2021 Income Statement ($ in millions) Net sales $ 10,500 Cost of goods sold 8,200 Depreciation 495 Earnings before interest and taxes $ 1,805 Interest paid 110 Taxable income $ 1,695 Taxes 356 Net income $ 1,339
Windswept, Incorporated 2020 and 2021 Balance Sheets ($ in millions) 2020 2021 2020 2021 Cash $ 330 $ 365 Accounts payable $ 1,760 $ 2,030 Accounts received 1,210 1,110 Long-term debt 1,120 1,445 Inventory 1,880 1,820 Common stock 3,460 3,080 Total $ 3,420 $ 3,295 Retained earnings 700 950 Net fixed assets 3,620 4,210 Total assets $ 7,040 $ 7,505 Total liabilities & equity $ 7,040 $ 7,505 What is the return on equity for 2021?
Multiple Choice
44.79%
40.95%
43.47%
58.60%
33.23%
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