Use the information in the table below to answer the following questions. Windswept Woodworks, Incorporated Input Data (millions of dollars) Year 2 Year 1 Accounts payable 622 554 Accounts receivable 1,466 1,000 Accumulated depreciation 6,932 6,802 Cash & equivalents 410 298 Common stock 1,370 1,290 Cost of goods sold 1,590 n.a. Depreciation expense ? n.a. Common stock dividends paid ? n.a. Interest expense 230 n.a. Inventory 1,200 1,196 Addition to retained earnings 602 n.a. Long-term debt 998 906 Notes payable 320 470 Gross plant & equipment 10,620 10,360 Retained earnings 3,248 2,646 Sales 3,108 n.a. Other current liabilities 206 186 Tax rate 21% n.a. Market price per share – year end $ 27.80 $ 25.50 Number of shares outstanding 500 million 500 million Net profit = 914.82 Required: a. Calculate Windswept Woodworks’ return on equity for year 2. (Round your answer to 2 decimal places.) Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.) b. Profit margin =? c. Tax burden ratio =? d. Interest burden ratio =? e. Asset turnover ratio =? f. Leverage ratio

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Use the information in the table below to answer the following questions.

	Year 2	Year 1
Windswept Woodworks, Incorporated
Input Data
(millions of dollars)
Accounts payable	622		554
Accounts receivable	1,466		1,000
Accumulated depreciation	6,932		6,802
Cash & equivalents	410		298
Common stock	1,370		1,290
Cost of goods sold	1,590		n.a.
Depreciation expense	?		n.a.
Common stock dividends paid	?		n.a.
Interest expense	230		n.a.
Inventory	1,200		1,196
Addition to retained earnings	602		n.a.
Long-term debt	998		906
Notes payable	320		470
Gross plant & equipment	10,620		10,360
Retained earnings	3,248		2,646
Sales	3,108		n.a.
Other current liabilities	206		186
Tax rate	21%		n.a.
Market price per share – year end	$ 27.80		$ 25.50
Number of shares outstanding	500	million	500	million