Question: Use the information in the table below to answer the following questions. Windswept Woodworks, Inc. Input Data (millions of dollars) Year 2 Year 1 Accounts
Use the information in the table below to answer the following questions.
| Windswept Woodworks, Inc. | |||||||
| Input Data | |||||||
| (millions of dollars) | |||||||
| Year 2 | Year 1 | ||||||
| Accounts payable | 508 | 444 | |||||
| Accounts receivable | 1,352 | 890 | |||||
| Accumulated depreciation | 6,818 | 6,692 | |||||
| Cash & equivalents | 296 | 188 | |||||
| Common stock | 1,256 | 1,180 | |||||
| Cost of goods sold | 1,500 | n.a. | |||||
| Depreciation expense | ? | n.a. | |||||
| Common stock dividends paid | ? | n.a. | |||||
| Interest expense | 140 | n.a. | |||||
| Inventory | 1,086 | 1,086 | |||||
| Addition to retained earnings | 602 | n.a. | |||||
| Long-term debt | 884 | 796 | |||||
| Notes payable | 230 | 380 | |||||
| Gross plant & equipment | 10,260 | 10,000 | |||||
| Retained earnings | 3,134 | 2,536 | |||||
| Sales | 3,018 | n.a. | |||||
| Other current liabilities | 116 | 96 | |||||
| Tax rate | 34 | % | n.a. | ||||
| Market price per share year end | $ | 19.80 | $ | 17.50 | |||
| Number of shares outstanding | 500 | million | 500 | million | |||
Net profit for Year 2 = 826.32
a. Calculate Windswept Woodworks return on equity for year 2. (Round your answer 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
