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Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 300 $ 335 Accounts payable $ 1,670 $ 1,895

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)

2009

2010

2009

2010

Cash $ 300 $ 335 Accounts payable $ 1,670 $ 1,895
Accounts rec. 1,150 1,050 Long-term debt 1,090 1,415
Inventory

1,820

1,775

Common stock $ 3,400 $ 3,050
Total $ 3,270 $ 3,160 Retained earnings

670

920

Net fixed assets

3,560

4,120

Total assets

$ 6,830

$ 7,280

Total liab. & equity

$ 6,830

$ 7,280

What is the return on equity for 2010?

Use the following information to answer this question.

Windswept, Inc. 2010 Income Statement ($ in millions)
Net sales $ 10,200
Less: Cost of goods sold 8,050
Less: Depreciation

480

Earnings before interest and taxes $ 1,670
Less: Interest paid

104

Taxable Income $ 1,566
Less: Taxes

548

Net income

$ 1,018

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