Question: Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 10,000 Cost of goods sold 7,950

Use the following information to answer this question.

Windswept, Inc. 2017 Income Statement ($ in millions)
Net sales $ 10,000
Cost of goods sold 7,950
Depreciation 410
Earnings before interest and taxes $ 1,640
Interest paid 100
Taxable income $ 1,540
Taxes 539
Net income $ 1,001

Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions)
2016 2017 2016 2017
Cash $ 270 $ 300 Accounts payable $ 1,630 $ 1,812
Accounts rec. 1,110 1,010 Long-term debt 1,070 1,383
Inventory 1,780 1,755 Common stock 3,360 3,030
Total $ 3,160 $ 3,065 Retained earnings 650 900
Net fixed assets 3,550 4,060
Total assets $ 6,710 $ 7,125 Total liab. & equity $ 6,710 $ 7,125

What is the cash coverage ratio for 2017?

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