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 | 552 | 484 | ||
| Accounts receivable | 1,396 | 930 | ||
| Accumulated depreciation | 6,862 | 6,732 | ||
| Cash & equivalents | 340 | 228 | ||
| Common stock | 1,300 | 1,220 | ||
| Cost of goods sold | 1,520 | n.a. | ||
| Depreciation expense | ? | n.a. | ||
| Common stock dividends paid | ? | n.a. | ||
| Interest expense | 160 | n.a. | ||
| Inventory | 1,130 | 1,126 | ||
| Addition to retained earnings | 602 | n.a. | ||
| Long-term debt | 928 | 836 | ||
| Notes payable | 250 | 400 | ||
| Gross plant & equipment | 10,340 | 10,080 | ||
| Retained earnings | 3,178 | 2,576 | ||
| Sales | 3,038 | n.a. | ||
| Other current liabilities | 136 | 116 | ||
| Tax rate | 21% | n.a. | ||
| Market price per share year end | $ 20.80 | $ 18.50 | ||
| Number of shares outstanding | 500 | million | 500 | million |
Net profit = 970.12
Required:
a. Calculate Windswept Woodworks return on equity for year 2. (Round your answer to 2 decimal places.)
Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.)
Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.)
profit margin
tax burden
interest burden ratio
assets turnover ratio
leverage ratio
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
