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Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock 424 1,268 6,734 212 1,172 500 374 820 6,622 118 1,110

Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock 424 1,268 6,734 212 1,172 500 374 820 6,622 118 1,110

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting 

Use the information in the table below to answer the following questions. Windswept Woodworks, Inc. Input Data (millions of dollars) Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant & equipment Retained earnings Sales Other current liabilities Tax rate Market price per share-year end Number of shares outstanding ROE c. Tax burden ratio d. Interest burden ratio $ e. Asset turnover ratio Year 2 f. Leverage ratio 424 1,268 6,734 212 1,172 1,500 ? ? 140 1,002 602 800 230 10,260 3,050 3,018 116 34% 19.80 500 million $ Year 1 374 820 6,622 118 1,110 n.a. n.a. n.a. n.a. 1,016 Net profit for Year 2 = 835.56 a. Calculate Windswept Woodworks' return on equity for year 2. (Round your answer to 2 decimal places.) n.a. 726 380 10,000 2,466 Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.) b. Profit margin n.a. 96 n.a. 17.50 500 million
Transcribed Image Text:Use the information in the table below to answer the following questions. Windswept Woodworks, Inc. Input Data (millions of dollars) Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant & equipment Retained earnings Sales Other current liabilities Tax rate Market price per share-year end Number of shares outstanding ROE c. Tax burden ratio d. Interest burden ratio $ e. Asset turnover ratio Year 2 f. Leverage ratio 424 1,268 6,734 212 1,172 1,500 ? ? 140 1,002 602 800 230 10,260 3,050 3,018 116 34% 19.80 500 million $ Year 1 374 820 6,622 118 1,110 n.a. n.a. n.a. n.a. 1,016 Net profit for Year 2 = 835.56 a. Calculate Windswept Woodworks' return on equity for year 2. (Round your answer to 2 decimal places.) n.a. 726 380 10,000 2,466 Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.) b. Profit margin n.a. 96 n.a. 17.50 500 million
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