Earnings before interest and taxes inventory taxable


Use the following information to answer this question.

 

Windswept, Inc. 2010 Income Statement ($ in millions)

 

Net sales

$ 9,530

 

Less: Cost of goods sold

7,760

 

Less: Depreciation

465

 

Earnings before interest and taxes

$ 1,305

 

Less: Interest paid

104

 

Taxable Income

$ 1,201

 

Less: Taxes

420

 

Net income

$ 781

 

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)

 

2009

2010

 

2009

2010

Cash

$ 230

$ 260

Accounts payable

$ 1,370

$ 1,385

Accounts rec.

1,000

900

Long-term debt

1,100

1,300

Inventory

1,810

1,695

Common stock

$ 3,340

$ 3,250

Total

$ 3,040

$ 2,855

Retained earnings

640

890

Net fixed assets

3,410

3,970

 

 

 

Total assets

$ 6,450

$ 6,825

Total liab. & equity

$ 6,450

$ 6,825

What is the quick ratio for 2010?

 

                 

1.22

2.06

1.87

0.82

 

0.84

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Financial Accounting: Earnings before interest and taxes inventory taxable
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