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Use the information in the table below to answer the following questions. Windswept Woodworks, Incorporated Input Data (millions of dollars) Year 2 Year 1 Accounts
Use the information in the table below to answer the following questions.
Windswept Woodworks, Incorporated | ||||
Input Data | ||||
(millions of dollars) | ||||
Year 2 | Year 1 | |||
---|---|---|---|---|
Accounts payable | 602 | 534 | ||
Accounts receivable | 1,446 | 980 | ||
Accumulated depreciation | 6,912 | 6,782 | ||
Cash & equivalents | 390 | 278 | ||
Common stock | 1,350 | 1,270 | ||
Cost of goods sold | 1,570 | n.a. | ||
Depreciation expense | ? | n.a. | ||
Common stock dividends paid | ? | n.a. | ||
Interest expense | 210 | n.a. | ||
Inventory | 1,180 | 1,176 | ||
Addition to retained earnings | 602 | n.a. | ||
Long-term debt | 978 | 886 | ||
Notes payable | 300 | 450 | ||
Gross plant & equipment | 10,540 | 10,280 | ||
Retained earnings | 3,228 | 2,626 | ||
Sales | 3,088 | n.a. | ||
Other current liabilities | 186 | 166 | ||
Tax rate | 21% | n.a. | ||
Market price per share year end | $ 25.80 | $ 23.50 | ||
Number of shares outstanding | 500 | million | 500 | million |
Net profit = 930.62
Required:
a. Calculate Windswept Woodworks return on equity for year 2. (Round your answer to 2 decimal places.)
ROE = ____________________
Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.)
profit margin :
tax burden ratio:
interest burden ratio
asset turnover ratio
leverage ratio:
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