Question

Check my work U HUU MIU MIU your Wind wept Woodworks, Inc. Input Data (millions of dollars) Year 2 Accounts payable 472 Accounts receivable 1,316 Accumulated depreciation 6,782 Canh & equivalents 260 Common stock 1,220 Coat of goods sold 1,500 Depreciation expense 2 Common stock dividends paid 2 Interest expense 140 Inventory 1,050 Addition to retained earnings 602 Long-term debt 848 Notes payable 230 Gross plant & equipment 10,260 Retained earnings 3,098 Sales 3,018 Other current liabilities 116 Tax rate 349 Market price per share - year and $ 19.80 Number of shares outstanding 500 million Year 1 414 860 6,662 158 1. 150 n.a. n.. n.. n.. 1,056 766 380 10,000 2,506 n.. 96 n.. $ 17.50 500 million Net profit=830.28 a. Calculate Windswept Woodworks' return on equity for year 2. (Round your answer to 2 decimal places.) ROE Calculate the following items for Windswept Woodworks for year 2. (Round your answers to 2 decimal places.) b. Profit margin c. Tax burden ratio d. Interest burden ratio e. Asset turnover ratio f. Leverage ratio

Answer 1

a. Return on Equity b. Profit margin Met motit shareholders equity $ 830.28 $9900 8,39% Net profit total sales revenue $830,28 $3018 = 27.51%), c. Tai burden ratio : 1- tax rate 31-0.34 16 d. Interest burden.ratio Garnings before Interest en far 3 nterest expense K 280.36 X 100 66 $140 3.0 3 total sales revenue c. Aseb tumores ratio. -Average total assets computatim oy average total assets Year a Yeari Accounts receivable 41316 $ &00 cathy each equivalent $0702 $6662 $10960 plant & equipment $LODOD $LOSD 4 tогь Innentory $19408 $18578 $ 18518 + $19408 Average total asseto 2 $18993 2/2 =

-Asset untrer ratio Sales Revenue -Average total anels $ 3018 $18993 = 15.891. c) leverage ratio Mescle to equity ratio total assets total equity $1940s $9900 1.96 3/3 =