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Use the following information:
Windswept, Inc. 2017
Income Statement
($ in millions)
Net sales $10,200
Cost of goods sold 7,800
Depreciation 355
Earnings before interest and taxes $2,045
Interest paid 94 Taxable income $1,951
Taxes 585
Net income $ 1,366
Windswept, Inc. 2016 and 2017
Balance Sheets ($ in millions)
2016 2017 2016 2017
Cash $340 $360 Accounts payable $1,820 $1,680
Accounts rec. 1,050 950 Long-term debt 1,040 1,500
Inventory 1,820 1,740 Common stock 3,300 3,110
Total $3,210 $3,050 Retained earnings 620 870
Net fixed assets3,570 4,110
Total assets $6,780 $7,160 Total liab & equity $6,780 $7,160
What amount should be included in the financing section of the 2010 statement of cash flows for dividends paid?


Sagot :

Answer:

Windswept, Inc.

The amount that should be included in the financing section of the 2010 statement of cash flows for dividends paid is:

= $1,116

Explanation:

a) Data and Calculations:

Income Statement

($ in millions)

Net sales                                           $10,200

Cost of goods sold                               7,800

Gross profit                                        $2,400

Depreciation                                           355

Earnings before interest and taxes $2,045

Interest paid                                             94

Taxable income                                 $1,951

Taxes                                                     585

Net income                                      $ 1,366

Windswept, Inc.

Balance Sheets ($ in millions)

                                         2016     2017                                    2016     2017

Cash                                $340    $360  Accounts payable  $1,820  $1,680

Accounts receivable      1,050       950  Long-term debt       1,040     1,500

Inventory                        1,820     1,740   Common stock       3,300     3,110

Total                             $3,210 $3,050   Retained earnings     620      870

Net fixed assets            3,570     4,110

Total assets                $6,780  $7,160   Total liab & equity $6,780 $7,160

Dividends paid:

Retained earnings, 2016     $620

Net income for 2017            1,366

Total                                   $1,986

Retained earnings, 2017      (870)

Dividends paid =                 $1,116