Question: Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 12,650 Less: Cost of goods sold

Use the following information to answer this question.

Windswept, Inc. 2010 Income Statement ($ in millions)
Net sales $ 12,650
Less: Cost of goods sold 7,900
Less: Depreciation

490

Earnings before interest and taxes $ 4,260
Less: Interest paid

98

Taxable Income $ 4,162
Less: Taxes

1,457

Net income

$ 2,705

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)

2009

2010

2009

2010

Cash $ 250 $ 280 Accounts payable $ 1,780 $ 1,730
Accounts rec. 1,090 990 Long-term debt 1,060 1,380
Inventory

1,970

1,720

Common stock $ 3,340 $ 3,030
Total $ 3,310 $ 2,990 Retained earnings

640

890

Net fixed assets

3,510

4,040

Total assets

$ 6,820

$ 7,030

Total liab. & equity

$ 6,820

$ 7,030

What is the fixed asset turnover? (use 2010 values)

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