Question: begin { tabular } { | l | l | l | l | } hline multicolumn { 4 } { |

\begin{tabular}{|l|l|l|l|}
\hline \multicolumn{4}{|c|}{Windswept Woodworks, Incorporated Input Data (millions of dollars)}\\
\hline & & Year 2 & Year 1\\
\hline Accounts payable & & 622 & 554\\
\hline Accounts receivable & & 1,466 & 1,000\\
\hline Accumulated depreciation & & 6,932 & 6,802\\
\hline Cash \& equivalents & & 410 & 298\\
\hline Common stock & & 1,370 & 1,290\\
\hline Cost of goods sold & & 1,590 & not applicable \\
\hline Depreciation expense & & ? & not applicable \\
\hline Common stock dividends paid & & ? & not applicable \\
\hline Interest expense & & 230 & not applicable \\
\hline Inventory & & 1,200 & 1,196\\
\hline Addition to retained earnings & & 602 & not applicable \\
\hline Long-term debt & & 998 & 906\\
\hline Notes payable & & 320 & 470\\
\hline Gross plant \& equipment & & 10,620 & 10,360\\
\hline Retained earnings & & 3,248 & 2,646\\
\hline Sales & & 3,108 & not applicable \\
\hline Other current liabilities & & 206 & 186\\
\hline Tax rate & & 21\% & not \\
\hline & & & applicable \\
\hline Market price per share - year end & & \$ 27.80 & \$ 25.50\\
\hline Number of shares outstanding & & 500 million & 500 million \\
\hline
\end{tabular}
Net profit =914.82
Required:
a. Calculate Windswept Woodworks' return on equity for year 2.
Note: Round your answer to \(\mathbf{2}\) decimal places.
ROE
Calculate the following items for Windswept Woodworks for year 2.
Note: Round your answers to \(\mathbf{2}\) decimal places.
b. Profit margin
c. Tax burden ratio
\begin{tabular}{l|l}
\hline d. Interest burden ratio & \\
\hline e. Asset turnover ratio & \\
\hline f. Leverage ratio & \\
\hline
\end{tabular}
\ begin { tabular } { | l | l | l | l | } \ hline

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!