Earnings before interest and taxes inventory taxable

Question

Use the following information to answer this question.
Windswept, Inc. 2010 Income Statement ($ in millions)
Net sales			$ 9,530
Less: Cost of goods sold			7,760
Less: Depreciation			465
Earnings before interest and taxes			$ 1,305
Less: Interest paid			104
Taxable Income			$ 1,201
Less: Taxes			420
Net income			$ 781
Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)
	2009	2010					2009	2010
Cash	$ 230	$ 260		Accounts payable			$ 1,370	$ 1,385
Accounts rec.	1,000	900		Long-term debt			1,100	1,300
Inventory	1,810	1,695		Common stock			$ 3,340	$ 3,250
Total	$ 3,040	$ 2,855		Retained earnings			640	890
Net fixed assets	3,410	3,970
Total assets	$ 6,450	$ 6,825		Total liab. & equity			$ 6,450	$ 6,825
What is the quick ratio for 2010?

1.22

2.06

1.87

0.82

 

0.84