Use the following information to answer this question: Windswept, Incorporated2021 Income Statement($ in millions)Net sales$ 9,400Cost of goods sold7,650Depreciation440Earnings before interest and taxes$ 1,310Interest paid88Taxable income$ 1,222Taxes257Net income$ 965 Windswept, Incorporated2020 and 2021 Balance Sheets($ in millions) 20202021 20202021Cash$ 220$ 255Accounts payable$ 1,490$ 1,595Accounts received990890Long-term debt1,0101,335Inventory1,6601,655Common stock3,2402,970Total$ 2,870$ 2,800Retained earnings530780Net fixed assets3,4003,880 Total assets$ 6,270$ 6,680Total liabilities & equity$ 6,270$ 6,680 What is the return on equity for 2021?

Return on equity is the rate of return that investor will get on equity provided. Return on Equity…

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Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....

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Use the following information to answer this question:

Windswept, Incorporated
2021 Income Statement
($ in millions)
Net sales	$ 9,400
Cost of goods sold	7,650
Depreciation	440
Earnings before interest and taxes	$ 1,310
Interest paid	88
Taxable income	$ 1,222
Taxes	257
Net income	$ 965

Windswept, Incorporated
2020 and 2021 Balance Sheets
($ in millions)
	2020	2021		2020	2021
Cash	$ 220	$ 255	Accounts payable	$ 1,490	$ 1,595
Accounts received	990	890	Long-term debt	1,010	1,335
Inventory	1,660	1,655	Common stock	3,240	2,970
Total	$ 2,870	$ 2,800	Retained earnings	530	780
Net fixed assets	3,400	3,880
Total assets	$ 6,270	$ 6,680	Total liabilities & equity	$ 6,270	$ 6,680

What is the return on equity for 2021?

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