Use the following information to answer this question. Windswept, Incorporated 2022 Income Statement (in millions) Net sales $ 9,700 Cost of goods sold 7,800 Depreciation 455 Earnings before interest and taxes $ 1,445 Interest paid 94 Taxable income $ 1,351 Taxes 473 Net income $ 878 Windswept, Incorporated 2021 and 2022 Balance Sheets (in millions)   2021 2022   2021 2022 Cash $ 250 $ 285 Accounts payable $ 1,520 $ 1,670 Accounts receivable 1,050 950 Long-term debt 1,040 1,365 Inventory 1,720 1,700 Common stock 3,300 3,000 Total $ 3,020 $ 2,935 Retained earnings 620 870 Net fixed assets 3,460 3,970       Total assets $ 6,480 $ 6,905 Total liabilities and equity $ 6,480 $ 6,905 What is the return on equity for 2022?Single choice

A

37.34%

B

48.17%

C

22.69%

D

27.87%

E

29.27%

Log in for full answers

We've collected over 50,000 authentic original questions and detailed explanations from around the globe. Log in now and get instant access to the answers!

Similar Questions

The business is a computer sales and repair store. There has been an increase in customer demand with more people working from home, but there have also been rising costs due to COVID19. The actual dollar figure for profit is fairly similar between the current and prior year, however the business did issue more share capital. Is the change in the ratio a an improvement or deterioration/decline in the financial situation of the business? Or neither? Return on equity Previous year Current year 13.5% 10.4%

Use the following information to answer this question.   Bayside, Inc. 2010 Income Statement ($ in thousands) Net sales $ 6,040 Less: Cost of goods sold 4,200 Less: Depreciation 400 Earnings before interest and taxes $ 1,440 Less: Interest paid 30 Taxable Income $ 1,410 Less: Taxes 423 Net income $ 987     Bayside, Inc. 2009 and 2010 Balance Sheets ($ in thousands)     2009 2010   2009 2010 Cash $ 115 $ 220 Accounts payable $ 1,580 $ 1,510 Accounts rec. 990 830 Long-term debt 810 610 Inventory 1,705 2,040 Common stock $ 3,240 $ 3,280 Total $ 2,810 $ 3,090 Retained earnings 880 1,130 Net fixed assets 3,700 3,440       Total assets $ 6,510 $ 6,530 Total liab. & equity $ 6,510 $ 6,530 What is the return on equity for 2010?

Y3K, Inc., has sales of $4,100, total assets of $3,255, and a debt−equity ratio of 1.10. If its return on equity is 19 percent, what its net income?

A company has the following financial information for the year ending 31 December 2021: •    profit before tax $150,000 •    profit after tax $100,000 •    total equity (on 1 January 2021) $500,000 •    total equity (on 31 December 2021) $800,000. What is the return on equity (ROE) ratio for the year ending 31 December 2021?

More Practical Tools for Students Powered by AI Study Helper

Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!