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?
Multiple Choice
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3.00 times
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16.40 times
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20.50 times
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6.83 times
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4.24 times
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