1. Business
  2. Finance
  3. use the following information to answer this question windswept inc...

Question: use the following information to answer this question windswept inc...

Question details

Use the following information to answer this question.

Windswept, Inc.
2017 Income Statement
($ in millions)
Net sales $ 8,900
Cost of goods sold 7,400
Depreciation 355
Earnings before interest and taxes $ 1,145
Interest paid 91
Taxable income $ 1,054
Taxes 369
Net income $ 685

  

Windswept, Inc.
2016 and 2017 Balance Sheets
($ in millions)
2016 2017 2016 2017
Cash $ 160 $ 190 Accounts payable $ 1,240 $ 1,447
Accounts rec. 960 860 Long-term debt 1,040 1,273
Inventory 1,560 1,590 Common stock 3,250 2,920
Total $ 2,680 $ 2,640 Retained earnings 480 730
Net fixed assets 3,330 3,730
Total assets $ 6,010 $ 6,370 Total liab. & equity $ 6,010 $ 6,370


What is the cash coverage ratio for 2017?   

  • 12.58 times

  • 16.48 times

  • 2.09 times

  • 3.48 times

  • 7.89 times

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution