Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $8,750 Cost of goods sold Depreciation Earnings before interest and taxes Interest paid 7,310 420 $1,020 86 Taxable income $ 934 Таxes 327 Net income $ 607 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 $ 140 $ 170 Accounts payable 720 Long-term debt Cash $1,010 $1,160 Accounts rec. 820 1,010 1,210 1,560 Common stock $2,500 $2,450 Retained earnings 3,700 Inventory 1,540 3,160 2,980 Total 550 800 Net fixed assets 3,230 Total assets $5,730 $6,150 Total liab. & equity $5,730 $6,150 What is the quick ratio for 2017?
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $8,750 Cost of goods sold Depreciation Earnings before interest and taxes Interest paid 7,310 420 $1,020 86 Taxable income $ 934 Таxes 327 Net income $ 607 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 $ 140 $ 170 Accounts payable 720 Long-term debt Cash $1,010 $1,160 Accounts rec. 820 1,010 1,210 1,560 Common stock $2,500 $2,450 Retained earnings 3,700 Inventory 1,540 3,160 2,980 Total 550 800 Net fixed assets 3,230 Total assets $5,730 $6,150 Total liab. & equity $5,730 $6,150 What is the quick ratio for 2017?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the quick ratio for 2017?
A. 2.11 times
B. .74 times
C. 1.97 times
D. 1.34 times
E. .77 times
Transcribed Image Text:Use the following information to answer this question.
Windswept, Inc.
2017 Income Statement
($ in millions)
Net sales
$8,750
Cost of goods sold
Depreciation
7,310
420
Earnings before interest and taxes
$1,020
Interest paid
86
Taxable income
$
934
Taxes
327
Net income
$ 607
Windswept, Inc.
2016 and 2017 Balance Sheets
($ in millions)
2016
2017
2016
2017
Cash
$
140 $ 170
Accounts payable
$1,010 $1,160
Accounts rec.
820
720 Long-term debt
1,010
1,210
1,540
$2,500 $2,450 Retained earnings
Inventory
1,560
Common stock
3,160
2,980
Total
550
800
Net fixed assets
3,230
3,700
Total assets
$5,730 $6,150 Total liab. & equity
$5,730 $6,150
What is the quick ratio for 2017?
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