Finance - Exam With Correct Answers

A firm has a return on equity of 23 percent. The total asset turnover is 2.2 and the profit margin is 6 percent. The total equity is $5,600. What is the net income? {Ans: $1,288}You have just won the lottery and will receive a lump sum payment of $23.37 million after taxes. Instead of immediately spending your money, you plan to deposit all of the money into an account that will earn 5.44 percent. If you make equal annual withdrawals for the next 30 years, how much can you withdraw each year starting exactly one year from now? {Ans: $1,597,341.76}Windswept, Inc.2017 Income Statement($ in millions)Net sales$10,550 Cost of goods sold 8,200 Depreciation 395 Earnings before interest and taxes$1,955 Interest paid 110 Taxable income$1,845 Taxes 554 Net income$1,291 Windswept, Inc.2016 and 2017 Balance Sheets($ in millions) 2016 2017 2016 2017 Cash$330 $355 Accounts payable$1,720 $2,057 Accounts rec. 1,210 1,110 Long-term debt 1,120 1,308 Inventory 1,880 1,710 Common stock 3,460 3,080 Total$3,420 $3,175 Retained earnings 700 950 Net fixed assets 3,580 4,220 Total assets$7,000 $7,395 Total liab. & equity$7,000 $7,395 Windswept, Inc., has 600 million shares of stock outstanding. Its price-earnings ratio for 2017 is 20. What is the market