6. Use the following information to answer this question: Windswept, Incorporated 2021 Income Statement ($ in millions) Net sales Cost of goods sold Depreciation Cash Earnings before $1,625 interest and taxes Interest paid Taxable income Taxes Net income Accounts received Inventory Total 10,100 8,000 475 Net fixed assets Total assets 102 $ 1,523 320 $ 1,203 Windswept, Incorporated 2020 and 2021 Balance Sheets. ($ in millions) 2020 2021 $ 290 $ 325 1,130 1,030 1,800 1,760 $ 3,115 4,090 $ 3,220 3,540 $ 6,760 $ 7,205 Accounts payable Long-term debt Common stock Retained earnings Total liabilities & equity 2020 $ 1,640 1,080 3,380 660 $ 6,760 What is the return on equity for 2021? Write down your calculation. (10%) 2021 $ 1,850 1,405 3,040 910 $ 7,205
6. Use the following information to answer this question: Windswept, Incorporated 2021 Income Statement ($ in millions) Net sales Cost of goods sold Depreciation Cash Earnings before $1,625 interest and taxes Interest paid Taxable income Taxes Net income Accounts received Inventory Total 10,100 8,000 475 Net fixed assets Total assets 102 $ 1,523 320 $ 1,203 Windswept, Incorporated 2020 and 2021 Balance Sheets. ($ in millions) 2020 2021 $ 290 $ 325 1,130 1,030 1,800 1,760 $ 3,115 4,090 $ 3,220 3,540 $ 6,760 $ 7,205 Accounts payable Long-term debt Common stock Retained earnings Total liabilities & equity 2020 $ 1,640 1,080 3,380 660 $ 6,760 What is the return on equity for 2021? Write down your calculation. (10%) 2021 $ 1,850 1,405 3,040 910 $ 7,205
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![6. Use the following information to answer this question:
Windswept, Incorporated
2021 Income Statement
($ in millions)
Net sales
Cost of goods sold
Depreciation
Cash
Earnings before $1,625
interest and taxes
Interest paid
Taxable income
Taxes
Net income
Accounts received
Inventory
Total
10,100
8,000
475
Net fixed assets
Total assets
102
$ 1,523
320
$ 1,203
Windswept, Incorporated
2020 and 2021 Balance Sheets.
($ in millions)
2020
2021
$ 290 $ 325
1,130 1,030
1,800 1,760
$
3,115
4,090
$ 3,220
3,540
$ 6,760
$
7,205
Accounts
payable
Long-term debt
Common stock
Retained
earnings
Total
liabilities &
equity
2020
$
1,640
1,080
3,380
660
$
6,760
What is the return on equity for 2021? Write down your calculation. (10%)
2021
$
1,850
1,405
3,040
910
$
7,205](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6251bed3-59cb-4c69-a5ff-890dcb6ab496%2F2dd881cc-cb33-4e4f-ae1c-437fbaa775ed%2Fb1do7op_processed.png&w=3840&q=75)
Transcribed Image Text:6. Use the following information to answer this question:
Windswept, Incorporated
2021 Income Statement
($ in millions)
Net sales
Cost of goods sold
Depreciation
Cash
Earnings before $1,625
interest and taxes
Interest paid
Taxable income
Taxes
Net income
Accounts received
Inventory
Total
10,100
8,000
475
Net fixed assets
Total assets
102
$ 1,523
320
$ 1,203
Windswept, Incorporated
2020 and 2021 Balance Sheets.
($ in millions)
2020
2021
$ 290 $ 325
1,130 1,030
1,800 1,760
$
3,115
4,090
$ 3,220
3,540
$ 6,760
$
7,205
Accounts
payable
Long-term debt
Common stock
Retained
earnings
Total
liabilities &
equity
2020
$
1,640
1,080
3,380
660
$
6,760
What is the return on equity for 2021? Write down your calculation. (10%)
2021
$
1,850
1,405
3,040
910
$
7,205
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