Question: Use the information in the table below to answer the following questions. Windswept Woodworks, Incorporated Input Data (millions of dollars) Year 2 Year 1 Accounts

Use the information in the table below to answer the following questions.

Windswept Woodworks, Incorporated
Input Data
(millions of dollars)
Year 2 Year 1
Accounts payable 612 544
Accounts receivable 1,456 990
Accumulated depreciation 6,922 6,792
Cash & equivalents 400 288
Common stock 1,360 1,280
Cost of goods sold 1,580 n.a.
Depreciation expense ? n.a.
Common stock dividends paid ? n.a.
Interest expense 220 n.a.
Inventory 1,190 1,186
Addition to retained earnings 602 n.a.
Long-term debt 988 896
Notes payable 310 460
Gross plant & equipment 10,580 10,320
Retained earnings 3,238 2,636
Sales 3,098 n.a.
Other current liabilities 196 176
Tax rate 21% n.a.
Market price per share year end $ 26.80 $ 24.50
Number of shares outstanding 500 million 500 million

Net profit = 922.72

Required:

a. Calculate Windswept Woodworks return on equity for year 2 (Round your answers to 2 decimal places.)

ROE:

Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.)

b. Profit margin
c. Tax burden ratio
d. Interest burden ratio
e. Asset turnover ratio
f. Leverage ratio

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