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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 | 552 | 484 | ||
Accounts receivable | 1,396 | 930 | ||
Accumulated depreciation | 6,862 | 6,732 | ||
Cash & equivalents | 340 | 228 | ||
Common stock | 1,300 | 1,220 | ||
Cost of goods sold | 1,520 | n.a. | ||
Depreciation expense | ? | n.a. | ||
Common stock dividends paid | ? | n.a. | ||
Interest expense | 160 | n.a. | ||
Inventory | 1,130 | 1,126 | ||
Addition to retained earnings | 602 | n.a. | ||
Long-term debt | 928 | 836 | ||
Notes payable | 250 | 400 | ||
Gross plant & equipment | 10,340 | 10,080 | ||
Retained earnings | 3,178 | 2,576 | ||
Sales | 3,038 | n.a. | ||
Other current liabilities | 136 | 116 | ||
Tax rate | 21% | n.a. | ||
Market price per share year end | $ 20.80 | $ 18.50 | ||
Number of shares outstanding | 500 | million | 500 | million |
Net profit = 970.12
Required:
a. Calculate Windswept Woodworks return on equity for year 2. (Round your answer to 2 decimal places.)
Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.)
Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.)
profit margin
tax burden
interest burden ratio
assets turnover ratio
leverage ratio
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