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Use the information in the table below to answer the following questions. Windswept Woodworks, Incorporated Input Data (millions of dollars) Accounts payable Accounts receivable
Use the information in the table below to answer the following questions. Windswept Woodworks, Incorporated Input Data (millions of dollars) Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant & equipment Retained earnings Sales Other current liabilities Tax rate Market price per share year end Number of shares outstanding Net profit 930.62 Year 2 Year 1 602 534 1,446 6,912 988 6,782 398 278 1,358 1,278 1,578 n.a. ? n.a. ? n.a. 210 n.a. 1,180 602 978 10,540 3,228 3,888 186 21% 1,176 n.a. 886 450 18,280 2,626 n.a. 166 n.a. $ 25.88 500 million $ 23.50 500 million Required: a. Calculate Windswept Woodworks' return on equity for year 2. (Round your answer to 2 decimal places.) ROE 20.33 Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.) b. Profit margin 0.85 c. Tax burden ratio 0.78 d. Interest burden ratio 0.85 e. Asset turnover ratio f. Leverage ratio
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