a. Interest coverage ratio (Assume that year 1 EBIT was 1,297 and year 1 interest expense was 120.)

Year 2 interest coverage ratio
Year 1 interest coverage ratio

b. Average collection period (Assume that the accounts receivable balance was 950 on December 31 of the previous year and that year 1 sales were 2,700.)

Year 2 ACP	days
Year 1 ACP	days
c. Current ratio

Year 2 current ratio
Year 1 current ratio
d. Quick ratio

Year 2 quick ratio
Year 1 quick ratio

Use the information in the table below to calculate the following ratios for Windswept Woodworks for year 1 and year 2. (Round your answers to 2 decimal places.) Windswept Woodworks, Inc. Input Data (millions of dollars) Year 2 Year 1 472 1,316 6,782 260 1,220 1,500 Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid 414 860 6,662 158 1,150 n.a n.a n.a n.a 1,056 n.a 766 140 1,050 602 848 230 10,260 3,098 3,018 116 Addition to retained earnings Long-term debt Notes payable Gross plant & equipment 10,000 2,506 n.a Other current liabilities Tax rate Market price per share - year end Number of shares outstanding 34% n.a S 19.80 $ 17.50 500 million 500 million