Use the following information to answer this question.Windswept, Inc.2017 Income Statement($ in millions)Net salesCost of goods soldDepreciationEarnings before interest and taxesInterest paidTaxable incomeTaxesNet incomeCashAccounts rec..InventoryTotalNet fixed assetsTotal assets$11,4008,150440$ 2,810108$ 2,702946$1,756Windswept, Inc.2016 and 2017 Balance Sheets($ in millions)20162017$ 320 $ 350What is the equity multiplier for 2017?Accounts payable1,190 1,090 Long-term debt2,120 1,805 Common stock$3,630 $3,245 Retained earnings3,560 4,180$7,190 $7,425 Total liab. & equity20162017$1,950 $2,0221,1101,393.3,4403,070690940$7,190 $7,425

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Description: Use the following information to answer this question.Windswept, Inc.2017 Income Statement($ in millions)Net salesCost of goods soldDepreciationEarnings before interest and taxesInterest paidTaxable incomeTaxesNet incomeCashAccounts rec..InventoryTo

The concept of equity multiplier is associated with the company financial position with respect to…

Business

Finance

2017 Income Statement ($ in millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Cash Accounts rec. Inventory Total Net fixed assets Total assets $11,400 8,150 440 What is the equity multiplier for 2017? $ 2,810 108 $ 2,702 946 $1,756 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 $ 320 $350 Accounts payable 1,090 Long-term debt 1,190 2,120 1,805 Common stock $3,630 $3,245 Retained earnings 3,560 4,180 $7,190 $7,425 Total liab. & equity 2016 $1,950 1,110 3,440 690 2017 $2,022 1,393. 3,070 940 $7,190 $7,425

2017 Income Statement ($ in millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Cash Accounts rec. Inventory Total Net fixed assets Total assets $11,400 8,150 440 What is the equity multiplier for 2017? $ 2,810 108 $ 2,702 946 $1,756 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 $ 320 $350 Accounts payable 1,090 Long-term debt 1,190 2,120 1,805 Common stock $3,630 $3,245 Retained earnings 3,560 4,180 $7,190 $7,425 Total liab. & equity 2016 $1,950 1,110 3,440 690 2017 $2,022 1,393. 3,070 940 $7,190 $7,425

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

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Concept explainers

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.

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