Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the information in the table below to answer the following questions. Windswept Woodworks, Inc. Input Data (millions of dollars) Year 2 Year 1 Accounts
Use the information in the table below to answer the following questions.
Windswept Woodworks, Inc. | |||||||
Input Data | |||||||
(millions of dollars) | |||||||
Year 2 | Year 1 | ||||||
Accounts payable | 484 | 424 | |||||
Accounts receivable | 1,328 | 870 | |||||
Accumulated depreciation | 6,794 | 6,672 | |||||
Cash & equivalents | 272 | 168 | |||||
Common stock | 1,232 | 1,160 | |||||
Cost of goods sold | 1,500 | n.a. | |||||
Depreciation expense | ? | n.a. | |||||
Common stock dividends paid | ? | n.a. | |||||
Interest expense | 140 | n.a. | |||||
Inventory | 1,062 | 1,066 | |||||
Addition to retained earnings | 602 | n.a. | |||||
Long-term debt | 860 | 776 | |||||
Notes payable | 230 | 380 | |||||
Gross plant & equipment | 10,260 | 10,000 | |||||
Retained earnings | 3,110 | 2,516 | |||||
Sales | 3,018 | n.a. | |||||
Other current liabilities | 116 | 96 | |||||
Tax rate | 34 | % | n.a. | ||||
Market price per share year end | $ | 19.80 | $ | 17.50 | |||
Number of shares outstanding | 500 | million | 500 | million | |||
Net profit = 828.96
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.)
b. Profit margin
c. Tax burden ratio
d. Interest burden ratio
e. Asset turnover ratio
f. Leverage ratio
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