Use the following information to answer this question. Windswept, Incorporated 2022 Income Statement (in millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Cash Accounts receivable Inventory Total Net fixed assets Total assets Windswept, Incorporated 2021 and 2022 Balance Sheets (in millions) 2021 $ 150 920 What is the return on equity for 2022? 1,520 $ 2,590 3,260 $8,700 7,340 405 $955 82 $ 873 306 $567 2022 $ 185 730 1,550 $2,465 3,670 $ 5,850 $ 6,135 Accounts payable Long-term debt Common stock Retained earnings Total liabilities & equity 2021 2022 $ 1,180 $ 1,260 1,000 1,265 3,210 2,900 710 460 $ 5,850 $ 6,135
Use the following information to answer this question. Windswept, Incorporated 2022 Income Statement (in millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Cash Accounts receivable Inventory Total Net fixed assets Total assets Windswept, Incorporated 2021 and 2022 Balance Sheets (in millions) 2021 $ 150 920 What is the return on equity for 2022? 1,520 $ 2,590 3,260 $8,700 7,340 405 $955 82 $ 873 306 $567 2022 $ 185 730 1,550 $2,465 3,670 $ 5,850 $ 6,135 Accounts payable Long-term debt Common stock Retained earnings Total liabilities & equity 2021 2022 $ 1,180 $ 1,260 1,000 1,265 3,210 2,900 710 460 $ 5,850 $ 6,135
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 4CE
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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