Question: Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 11,400 Less: Cost of goods sold

Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 11,400 Less: Cost of goods sold 8,150 Less: Depreciation 440 Earnings before interest and taxes $ 2,810 Less: Interest paid 108 Taxable Income $ 2,702 Less: Taxes 946 Net income $ 1,756 Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 320 $ 350 Accounts payable $ 1,950 $ 2,022 Accounts rec. 1,190 1,090 Long-term debt 1,110 1,393 Inventory 2,120 1,805 Common stock $ 3,440 $ 3,070 Total $ 3,630 $ 3,245 Retained earnings 690 940 Net fixed assets 3,560 4,180 Total assets $ 7,190 $ 7,425 Total liab. & equity $ 7,190 $ 7,425

What is the equity multiplier for 2010?

Step by Step Solution

3.54 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Stockholders equity for 2010 can be calculated as Common Stoc... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!