Question: Use the following information to answer this question. Windswept, Inc. Year 2 Income Statement ($ in millions) Net Sales $9,300 Less: Cost of goods sold

  1. Use the following information to answer this question.

Windswept, Inc. Year 2 Income Statement ($ in millions)

Net Sales

$9,300

Less: Cost of goods sold

7,440

Less: Depreciation

310

Earnings before interest and taxes

1,550

Less: Interest Paid

89

Taxable Income

1,461

Less: taxes

438

Net Income

1,023

Windswept, Inc Year 1 and Year 2 Balance Sheets ($ in millions)

Year 1

Year 2

Year 1

Year 2

Cash

$250

$265

Accounts Payable

$1,410

$1,545

Accounts Receivable

1,040

940

Long-term debt

1,140

1,410

Inventory

1,640

1,650

Common Stock

3,300

3,020

Total

2,930

2,855

Retained Earnings

470

720

Net Fixed Assets

3,390

3,840

Total Assets

6,320

6,695

Total Liability & Equity

6,320

6,695

What amount of dividends paid should be included in the financing section of the Year 2 statement of cash flows.

  1. $595 million
  2. $455 million
  3. $758 million
  4. $773 million
  5. $250 million

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