Compute the value of average total assets.

Question

Required: Based on the information in the table below, prepare an income statement for Windswept Woodworks, Incorporated for year 2. Assume that the company pays a flat tax rate of 21% on its taxable income. (Round your answers to 2 decimal places.) Windswept Woodworks, Incorporated Input Data (millions of dollars) 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 end Number of shares outstanding Windswept Woodworks, Incorporated Income Statement for the period ending December 31, Year 2 (millions of dollars) Sales Cost of goods sold Gross profit on sales Depreciation expense Earnings before interest and taxes Interest expense Taxable income Taxes (@21%) Net income Year 2 Year 1…

Answer 1

Question

Chapter 15, Problem 19BEA

1.

To determine

Compute the value of average total assets.

2.

To determine

Compute the value of return on assets.

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Required: Based on the information in the table below, prepare an income statement for Windswept Woodworks, Incorporated for year 2. Assume that the company pays a flat tax rate of 21% on its taxable income. (Round your answers to 2 decimal places.) Windswept Woodworks, Incorporated Input Data (millions of dollars) 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 end Number of shares outstanding Windswept Woodworks, Incorporated Income Statement for the period ending December 31, Year 2 (millions of dollars) Sales Cost of goods sold Gross profit on sales Depreciation expense Earnings before interest and taxes Interest expense Taxable income Taxes (@21%) Net income Year 2 Year 1…

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