Question: Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 8,850 Less: Cost of goods sold
| Use the following information to answer this question. |
| Windswept, Inc. 2010 Income Statement ($ in millions) | |
| Net sales | $ 8,850 |
| Less: Cost of goods sold | 7,300 |
| Less: Depreciation | 355 |
| Earnings before interest and taxes | $ 1,195 |
| Less: Interest paid | 85 |
| Taxable Income | $ 1,110 |
| Less: Taxes | 389 |
| Net income | $ 721 |
| Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) | |||||
| 2009 | 2010 | 2009 | 2010 | ||
| Cash | $ 150 | $ 180 | Accounts payable | $ 1,110 | $ 1,297 |
| Accounts rec. | 820 | 730 | Long-term debt | 990 | 1,223 |
| Inventory | 1,540 | 1,550 | Common stock | $ 3,170 | $ 2,900 |
| Total | $ 2,510 | $ 2,460 | Retained earnings | 460 | 710 |
| Net fixed assets | 3,220 | 3,670 | |||
| Total assets | $ 5,730 | $ 6,130 | Total liab. & equity | $ 5,730 | $ 6,130 |
| What is the equity multiplier for 2010? |
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