use the following information to answer this question. Windswept, Inc. 2010 Inco
ID: 2815788 • Letter: U
Question
use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 8,900 Less: Cost of goods sold 7,440 Less: Depreciation 415 Earnings before interest and taxes $ 1,045 Less: Interest paid 86 Taxable Income $ 959 Less: Taxes 336 Net income $ 623 Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 170 $ 205 Accounts payable $ 1,240 $ 1,440 Accounts rec. 960 860 Long-term debt 1,020 1,285 Inventory 1,560 1,580 Common stock $ 3,250 $ 2,920 Total $ 2,690 $ 2,645 Retained earnings 480 730 Net fixed assets 3,300 3,730 Total assets $ 5,990 $ 6,375 Total liab. & equity $ 5,990 $ 6,375 What is the return on equity for 2010?
Explanation / Answer
return on equity for 2010
=net income/equity
=623/(2920+730)
=17.07%
the above is answer..
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