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Windswept, Incorporated 2022 Income Statement (in millions) Net sales $ 8,600 Cost of goods sold 7,250 Depreciation 340 Earnings before interest and taxes $ 1,010 Interest paid 85 Taxable income $ 925 Taxes 324 Net income $ 601 Windswept, Incorporated 2021 and 2022 Balance Sheets (in millions) 2021 2022 2021 2022 Cash $ 130 $ 120 Accounts payable $ 1,150 $ 1,192 Accounts receivable 900 720 Long-term debt 1,010 1,243 Inventory 1,500 1,545 Common stock 3,190 2,890 Total $ 2,530 $ 2,385 Retained earnings 4

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Final Answer:

Windswept, Incorporated had a net income of $601 million in 2022.

Step-by-step explanation:

To determine the net income for Windswept, Incorporated in 2022, we look at the provided income statement.

The net income is the final line item on the income statement and represents the company's earnings after all expenses and taxes have been accounted for.

According to the income statement, the company had net sales of $8,600 million. The cost of goods sold was $7,250 million, and depreciation expenses amounted to $340 million. Subtracting the cost of goods sold and depreciation from net sales gives us the earnings before interest and taxes, which is $1,010 million.

From the earnings before interest and taxes, we subtract the interest paid, which is $85 million, to arrive at the taxable income of $925 million. The taxes paid by the company are stated as $324 million.

Finally, subtracting the taxes from the taxable income gives us the net income of $601 million for 2022.

The balance sheet information provided for 2021 and 2022 does not directly impact the calculation of net income. It provides a snapshot of the company's financial position at the end of each year, including cash, accounts payable, accounts receivable, long-term debt, inventory, common stock, and retained earnings.

These figures are important for assessing the company's overall financial health but are not directly relevant to calculating net income.

Therefore, the net income for Windswept, Incorporated in 2022 is $601 million

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