Question: Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 8,800 Less: Cost of goods sold

Use the following information to answer this question.

Windswept, Inc. 2010 Income Statement ($ in millions)
Net sales $ 8,800
Less: Cost of goods sold 7,350
Less: Depreciation

350

Earnings before interest and taxes $ 1,100
Less: Interest paid

89

Taxable Income $ 1,011
Less: Taxes

354

Net income

$ 657

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)

2009

2010

2009

2010

Cash $ 150 $ 180 Accounts payable $ 1,210 $ 1,402
Accounts rec. 940 840 Long-term debt 1,030 1,263
Inventory

1,540

1,575

Common stock $ 3,230 $ 2,910
Total $ 2,630 $ 2,595 Retained earnings

470

720

Net fixed assets

3,310

3,700

Total assets

$ 5,940

$ 6,295

Total liab. & equity

$ 5,940

$ 6,295

What is the cash coverage ratio for 2010?

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