Question

Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions)...

Use the following information to answer this question.

Windswept, Inc.
2017 Income Statement
($ in millions)
Net sales $ 11,000
Cost of goods sold 8,200
Depreciation 395
Earnings before interest and taxes $ 2,405
Interest paid 110
Taxable income $ 2,295
Taxes 689
Net income $ 1,606

  

Windswept, Inc.
2016 and 2017 Balance Sheets
($ in millions)
2016 2017 2016 2017
Cash $ 420 $ 445 Accounts payable $ 2,060 $ 2,005
Accounts rec. 1,210 1,110 Long-term debt 1,120 1,580
Inventory 1,980 1,820 Common stock 3,460 3,190
Total $ 3,610 $ 3,375 Retained earnings 700 950
Net fixed assets 3,730 4,350
Total assets $ 7,340 $ 7,725 Total liab. & equity $ 7,340 $ 7,725


What were the total dividends paid for 2017?  

$1,161 million

$250 million

$505 million

$825 million

$1,356 million

Homework Answers

Answer #2
Solution:
Answer is 5th option $1,356 million
Working Notes:
Dividend paid 2017 = Net income for 2017 - Increase in Retained earnings
Dividend paid 2017 = $1,606 - (Retained earnings 2017 - Retained earnings 2016)
Dividend paid 2017 = $1,606 - (950 - 700)
Dividend paid 2017 = $1,606 - $250
Dividend paid 2017 = $1,356 million
Please feel free to ask if anything about above solution in comment section of the question.
answered by: anonymous
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions)...
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 8,950 Cost of goods sold 7,490 Depreciation 425 Earnings before interest and taxes $ 1,035 Interest paid 94 Taxable income $ 941 Taxes 329 Net income $ 612    Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 170 $ 200 Accounts payable $ 1,150 $ 1,285 Accounts rec. 880 780 Long-term debt 1,060...
Use the following information to answer this question. Thomas Company 2017 Income Statement ($ in millions)...
Use the following information to answer this question. Thomas Company 2017 Income Statement ($ in millions) Net sales $ 9,530 Cost of goods sold 7,760 Depreciation 465 Earnings before interest and taxes $ 1,305 Interest paid 104 Taxable income $ 1,201 Taxes 420 Net income $ 781 Thomas Company 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 230 $ 260 Accounts payable $ 1,370 $ 1,385 Accounts rec. 1,000 900 Long-term debt 1,100 1,300...
Bob Evans Corporation’s financial statements ($ millions) … Income Statement Summary 2016 2017 Sales $1,799 $2,010...
Bob Evans Corporation’s financial statements ($ millions) … Income Statement Summary 2016 2017 Sales $1,799 $2,010 Earnings before interest & taxes (EBIT) $221 $304 Interest expense (net) (7) (12) Income before taxes $214 $292 Income Taxes (79) (99) Tax Rate 37% 34% Net income $135 $193 Common shares outstanding (millions) 38 38 Balance Sheet Summary 2015 2016 2017 Current assets $504 $536 $654 Timberland assets 513 508 513 Property, plant & equipment 681 718 827 Other assets 151 34 38...
A company has $614 in inventory, $1,903 in net fixed assets, $288 in accounts receivable, $133...
A company has $614 in inventory, $1,903 in net fixed assets, $288 in accounts receivable, $133 in cash, and $338 in accounts payable. What are the company's total current assets? A firm has $816 in inventory, $1,640 in fixed assets, $616 in accounts receivable, $372 in net working capital, and $207 in cash. What is the amount of current liabilities? You are examining a company's balance sheet and find that it has total assets of $20,134, a cash balance of...
shares in Millions, $ in Millions 2018 2017 2016 Income Statement Net Sales $108,203 $100,904 $94,595...
shares in Millions, $ in Millions 2018 2017 2016 Income Statement Net Sales $108,203 $100,904 $94,595 Cost of sales 71,043 66,548 62,282 Gross profit 37,160 34,356 32,313 Operating expenses: Selling, general and administrative 19,513 17,864 17,132 Depreciation and amortization 1,870 1,811 1,754 Impairment loss 247 0 0 Total operating expenses 21,630 19,675 18,886 Operating income 15,530 14,681 13,427 Interest and other (income) expense: Interest and investment income -93 -74 -36 Interest expense 1,051 1,057 972 Other 16 0 0 Interest...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 15% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 25% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio...
Rome Deposit, Inc. has the following balance sheet and income statement. Income Statement ($ millions) Balance...
Rome Deposit, Inc. has the following balance sheet and income statement. Income Statement ($ millions) Balance Sheet ($ millions) Net sales $ 5,800.00 Assets Expenses 2,700.00 Current assets $ 6,000.00 Depreciation 1,150.00 Net fixed assets 8,700.00 Taxable income $ 1,950.00 Total assets $ 14,700.00 Interest expense 970.00 Taxable income $ 980.00 Liabilities & Owner's Equity Taxes (35%) 343.00 Current liabilities $ 1,200.00 Net income $ 637.00 Long-term debt 5,400.00 Owner's equity 8,100.00 Total liabilities and equity $ 14,700.00 a. What...
Operating Section of Statement of Cash Flows (Indirect Method) Following are the income statement and balance...
Operating Section of Statement of Cash Flows (Indirect Method) Following are the income statement and balance sheet for Nike Inc. for the year ended May 31, 2016, and a forecasted income statement and balance sheet for 2017. Nike Inc. Income Statement For Year Ended May 31 $ millions 2016 actual 2017 Est. Revenues $ 32,376 $ 34,319 Cost of sales 17,405 18,464 Gross profit 14,971 15,855 Demand creation expense 3,278 3,466 Operating overhead expense 7,191 7,619 Total selling and administrative...
Goandwin, Inc. 2017 Income Statement Net sales $11,418 Cost of goods sold 6,320 Selling, general, and...
Goandwin, Inc. 2017 Income Statement Net sales $11,418 Cost of goods sold 6,320 Selling, general, and administrative expenses 2,419 Depreciation 967 Earnings before interest and taxes $1,712 Interest 230 Taxable Income $1,482 Taxes 519 Net Income $ 963 Goandwin, Inc. 2016 and 2017 Balance Sheets 2016 2017 2016 2017 Cash $ 298 $ 306 Accounts payable $6,219 $6,184 A/R 3,006 3,422 Accrued expenses 1,880 1,625 Inventory 5,210 5,650 Total C.L. $8,099 $7,809 Total C.A. $8,514 $9,378 Long-term debt $17,951 $21,991...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT