Use the following information to answer this question. Windswept, Inc.2017 Income Statement($ in millions)Net sales$9,000 Cost of goods sold 7,350 Depreciation 360 Earnings before interest and taxes$1,290 Interest paid 87 Taxable income$1,203 Taxes 421 Net income$782 Windswept, Inc.2016 and 2017 Balance Sheets($ in millions) 2016 2017 2016 2017 Cash$160 $190 Accounts payable$1,150 $1,332 Accounts rec. 840 740 Long-term debt 1,000 1,233 Inventory 1,570 1,565 Common stock 3,190 2,910 Total$2,570 $2,495 Retained earnings 470 720 Net fixed assets 3,240 3,700 Total assets$5,810 $6,195 Total liab. & equity$5,810 $6,195 What is the equity multiplier for 2017?

Equity multiplier is a ratio calculated to use see the company used it for how much assets are used…

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4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Use the following information to answer this question.

Windswept, Inc. 2017 Income Statement ($ in millions)
Net sales	$	9,000
Cost of goods sold		7,350
Depreciation		360
Earnings before interest and taxes	$	1,290
Interest paid		87
Taxable income	$	1,203
Taxes		421
Net income	$	782

Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions)
		2016		2017			2016		2017
Cash	$	160	$	190	Accounts payable	$	1,150	$	1,332
Accounts rec.		840		740	Long-term debt		1,000		1,233
Inventory		1,570		1,565	Common stock		3,190		2,910
Total	$	2,570	$	2,495	Retained earnings		470		720
Net fixed assets		3,240		3,700
Total assets	$	5,810	$	6,195	Total liab. & equity	$	5,810	$	6,195