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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