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

Question

Use the information in the table below to answer the following questions Windswept Woodworks, Inc. Input Data (millions of dollars) Year 2 Year 1 496 1,340 6,806 284 1,244 1,500 Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant&equipment; Retained earnings Sales Other current liabilities Tax rate Market price per share- year e Number of shares outstandin 434 880 6,682 178 1,170 n.a n.a 140 1,074 602 872 230 10,260 3,122 3,018 116 n.a n.a 1,076 n.a 786 380 10,000 2,526 n.a 96 n.a $ 17.50 34% nd S 19.80 500 million 500 million Net profit = 827.64 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 20.53 places.) b. Profit margin c. Tax burden ratio d. Interest burden ratio e. Asset turnover ratio f. Leverage ratio 0.46 0.66 0.90 0.49 4.78

Explanation / Answer

a) ROE = Net Profit / (Common Stock + Retained earnings) = 827.64 / (1244 + 3122) = 18.96%

f) Leverage Ratio = Total Asset / (Common Stock + Retained earnings) = 6152 / (1244 + 3122) = 1.41

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