Question: Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 11,150 Cost of goods sold 7,650
Use the following information to answer this question.
| Windswept, Inc. 2017 Income Statement ($ in millions) | |||
| Net sales | $ | 11,150 | |
| Cost of goods sold | 7,650 | ||
| Depreciation | 465 | ||
| Earnings before interest and taxes | $ | 3,035 | |
| Interest paid | 88 | ||
| Taxable income | $ | 2,947 | |
| Taxes | 1,031 | ||
| Net income | $ | 1,916 | |
| Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) | |||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Cash | $ | 200 | $ | 230 | Accounts payable | $ | 1,480 | $ | 1,475 | ||||
| Accounts rec. | 990 | 890 | Long-term debt | 1,010 | 1,330 | ||||||||
| Inventory | 1,750 | 1,645 | Common stock | 3,240 | 2,980 | ||||||||
| Total | $ | 2,940 | $ | 2,765 | Retained earnings | 620 | 870 | ||||||
| Net fixed assets | 3,410 | 3,890 | |||||||||||
| Total assets | $ | 6,350 | $ | 6,655 | Total liab. & equity | $ | 6,350 | $ | 6,655 | ||||
What is the fixed asset turnover for 2017?
1.68 times
2.24 times
2.87 times
4.03 times
.35 times
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
