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 622 554 Accounts receivable 1,466 1,000 Accumulated depreciation 6,932 6,802 Cash & equivalents 410 298 Common stock 1,370 1,290 Cost of goods sold 1,590 n.a. Depreciation expense ? n.a. Common stock dividends paid ? n.a. Interest expense 230 n.a. Inventory 1,200 1,196 Addition to retained earnings 602 n.a. Long-term debt 998 906 Notes payable 320 470 Gross plant & equipment 10,620 10,360 Retained earnings 3,248 2,646 Sales 3,108 n.a. Other current liabilities 206 186 Tax rate 21% n.a. Market price per share – year end $ 27.80 $ 25.50 Number of shares outstanding 500 million 500 million Net profit = 914.82 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.)
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 622 554 Accounts receivable 1,466 1,000 Accumulated depreciation 6,932 6,802 Cash & equivalents 410 298 Common stock 1,370 1,290 Cost of goods sold 1,590 n.a. Depreciation expense ? n.a. Common stock dividends paid ? n.a. Interest expense 230 n.a. Inventory 1,200 1,196 Addition to retained earnings 602 n.a. Long-term debt 998 906 Notes payable 320 470 Gross plant & equipment 10,620 10,360 Retained earnings 3,248 2,646 Sales 3,108 n.a. Other current liabilities 206 186 Tax rate 21% n.a. Market price per share – year end $ 27.80 $ 25.50 Number of shares outstanding 500 million 500 million Net profit = 914.82 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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 payable | 622 | 554 | ||
| Accounts receivable | 1,466 | 1,000 | ||
| 6,932 | 6,802 | |||
| Cash & equivalents | 410 | 298 | ||
| Common stock | 1,370 | 1,290 | ||
| Cost of goods sold | 1,590 | n.a. | ||
| Depreciation expense | ? | n.a. | ||
| Common stock dividends paid | ? | n.a. | ||
| Interest expense | 230 | n.a. | ||
| Inventory | 1,200 | 1,196 | ||
| Addition to |
602 | n.a. | ||
| Long-term debt | 998 | 906 | ||
| Notes payable | 320 | 470 | ||
| Gross plant & equipment | 10,620 | 10,360 | ||
| Retained earnings | 3,248 | 2,646 | ||
| Sales | 3,108 | n.a. | ||
| Other current liabilities | 206 | 186 | ||
| Tax rate | 21% | n.a. | ||
| Market price per share – year end | $ 27.80 | $ 25.50 | ||
| Number of shares outstanding | 500 | million | 500 | million |
Net profit = 914.82
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.)
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