Question: Use the following information to answer this question. Windswept., Inc. 2010 Income Statement ($lin millions) Net sales $ 10,350 Less. Cost of goods sold 17.800

 Use the following information to answer this question. Windswept., Inc. 2010

Use the following information to answer this question. Windswept., Inc. 2010 Income Statement ($lin millions) Net sales $ 10,350 Less. Cost of goods sold 17.800 Less: Depreciation 405 Earnings before interest and taxes $ 2,145 Less: Interest paid 94 Taxable Income $ 2.0511 Less: Taxes 718 Net income $ 1.333 Windswept Inc. 2009 and 2010 Balance Sheets $ in millions) 2009 2010 2009 2010 Cash $ 250 $ 280 Accounts payable $ 1670 $ 1,707 Accounts rec 11.050 950 Long-term debt 1,040 BAR 1.323 Inventory 1,9101 1.700 Common stock $ 3,300 $13,000 Total $ 3210 $ 2.930 Retained earnings 6201 870 Net fixed assets 3,420 3,970 Total assets $16.630 $ 6.900 Total liab. & equity $ 6.630 $ 6.900 What is the financial leverage ratio for 2010? (using the year-end value, not an average). Use the following information to answer this question. Windswept., Inc. 2010 Income Statement ($lin millions) Net sales $ 10,350 Less. Cost of goods sold 17.800 Less: Depreciation 405 Earnings before interest and taxes $ 2,145 Less: Interest paid 94 Taxable Income $ 2.0511 Less: Taxes 718 Net income $ 1.333 Windswept Inc. 2009 and 2010 Balance Sheets $ in millions) 2009 2010 2009 2010 Cash $ 250 $ 280 Accounts payable $ 1670 $ 1,707 Accounts rec 11.050 950 Long-term debt 1,040 BAR 1.323 Inventory 1,9101 1.700 Common stock $ 3,300 $13,000 Total $ 3210 $ 2.930 Retained earnings 6201 870 Net fixed assets 3,420 3,970 Total assets $16.630 $ 6.900 Total liab. & equity $ 6.630 $ 6.900 What is the financial leverage ratio for 2010? (using the year-end value, not an average)

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