Question: 682 Use the Information in the table below to answer the following questions. Windswept woodworks, Incorporated Input Data (millions of dollars) Year 2 Accounts payable

682 Use the Information in the table below to answer the following questions. Windswept woodworks, Incorporated Input Data (millions of dollars) Year 2 Accounts payable Accounts receivable 1,446 Accumulated depreciation 6,912 Cash & equivalents 390 Common stock 1,350 Cost of goods sold 1,578 Depreciation expense ? Common stock dividends paid Interest expense Inventory 1,180 Addition to retained earnings Long-term debt Notes payable Gross plant & equipment 10,540 Retained earnings 3,228 Sales 3,888 other current liabilities 186 Tax rate 21% Market price per share - year end $ 25.80 Number of shares outstanding 500 million Net profit = 930.62 Year 1 534 980 6,782 278 1,270 n.a. n.a. n.a. n.a. 1,176 n.a. 886 450 10,280 2,626 ? 210 682 978 382 166 n.a. $23.50 500 million Required: a. Calculate Windswept Woodworks' return on equity for year 2. (Round your answer to 2 decimal places.) Answer is complete and correct. 20.33 ROE Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. b. Profit margin 0.45 c. Tax burden ratio 0.79 d. Interest burden ratio 0.85 e. Asset turnover ratio 0.46 f. Leverage ratio 1.28
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
