Here are simplified financial statements for Phone Corporation in 2020: INCOME STATEMENT (Figures in $ millions)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Here are simplified financial statements for Phone Corporation in 2020: INCOME STATEMENT (Figures in $ millions) Net sales $ 14,000 Cost of goods sold 4,510 Other expenses 4,212 Depreciation 2,788 Earnings before interest and taxes (EBIT) Interest expense Income before tax $ 2,490 730 Taxes (at 21%) $ 1,760 370 Net income Dividends $ 1,390 $ 946 BALANCE SHEET (Figures in $ millions) Assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Net property, plant, and equipment Other long-term assets Total assets Liabilities and shareholders' equity Payables Short-term debt Other current liabilities Total current liabilities Long-term debt and leases End of Year Start of Year $ 98 2,832 232 912 $ 4,074 20,063 4,306 $ 28,443 $ 2,654 1,464 856 $ 4,974 4,777 6,268 12,424 $ 167 2,670 283 977 $ 4,097 20,005 3,860 $ 27,962 $ 3,130 1,618 832 $ 5,580 5,222 6,239 Other long-term liabilities Shareholders' equity 10,921 Total liabilities and shareholders' equity $ 28,443 $ 27,962 Calculate the following financial ratios for Phone Corporation: Note: Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places. Here are simplified financial statements for Phone Corporation in 2020: INCOME STATEMENT (Figures in $ millions) Net sales $ 14,000 Cost of goods sold 4,510 Other expenses 4,212 Depreciation 2,788 Earnings before interest and taxes (EBIT) Interest expense Income before tax $ 2,490 730 Taxes (at 21%) $ 1,760 370 Net income Dividends $ 1,390 $ 946 BALANCE SHEET (Figures in $ millions) Assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Net property, plant, and equipment Other long-term assets Total assets Liabilities and shareholders' equity Payables Short-term debt Other current liabilities Total current liabilities Long-term debt and leases End of Year Start of Year $ 98 2,832 232 912 $ 4,074 20,063 4,306 $ 28,443 $ 2,654 1,464 856 $ 4,974 4,777 6,268 12,424 $ 167 2,670 283 977 $ 4,097 20,005 3,860 $ 27,962 $ 3,130 1,618 832 $ 5,580 5,222 6,239 Other long-term liabilities Shareholders' equity 10,921 Total liabilities and shareholders' equity $ 28,443 $ 27,962 Calculate the following financial ratios for Phone Corporation: Note: Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places.
Expert Answer:
Answer rating: 100% (QA)
To calculate the financial ratios for Phone Corporation well use the provided figures from the incom... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Posted Date:
Students also viewed these finance questions
-
Please show all calculations and formulas.If using Excel, please show data, formulas, etc. Practice example 9: Pluto's has 14,000 shares of stock outstanding with a par value of $1 per share. The...
-
Identify a true statement about an employer's policies that lead to "gender-plus" discrimination. They are not neutral at all. They aim at hiring married women. They impose the same limitations on...
-
Belue and Scott are partners who share profits and losses in the ratio of 6:4, respectively. During the current year, Belue's capital account balance decreased by $120,000. Belue had drawings of...
-
Which of the following exceptions do not need to be handled or declared by the method in which they are thrown? (Choose three.) A. FileNotFoundException B. ArithmeticException C. IOException D....
-
In Example 10.2 in the text, suppose that the vehicles operate according to the following scheduling rule in order to minimize the distances the vehicles travel empty: vehicles delivering raw work...
-
Lyell Company started a newspaper delivery business on January 1, 2008. On that date, the company purchased a small pickup truck for $14,000. Lyell planned to depreciate the truck over three years...
-
Explain benefits of budgeting (Learning Objective 1) Consider the budget for your travel itinerary business (page 539). Explain how you benefit from preparing the budget.
-
RTI Company's master budget calls for production and sales of 18,000 units for $81,000; variable costs of $30,600; and fixed costs of $20,000. The company incurred $32,000 of variable costs to...
-
2 ) The process - controll division expects to sell 5 , 0 0 0 process - controll units this year. The semi conductor division Could produce these units by sacrificing 2 0 , 0 0 0 okay - chip units....
-
PP Inc. currently leases an office building. It initiated the original 23-year lease 17 years ago, so 6 years remain on the lease. On January 1, PP paid $28,500 to install a new heating and cooling...
-
Patient responsibilities include maximizing healthy habits, such as exercising, not smoking, and eating healthy; being involved in healthcare decisions; working collaboratively with healthcare...
-
Imagine a firm that employs two types of workers some with computer skills and some without. If technology advances so that computers become more useful to the firm, what happens to the marginal...
-
The optimal tariff for a small country is zero. Prove this statement geometrically and then explain your results.
-
Suppose that foreigners decided that financial investments in the United States were not a good idea. What would they do? What effect would these actions have on the value of the dollar and U.S....
-
Assume that on April 1, 2010, Roland, Corp., issues 8%, 10-year bonds payable with a maturity value of $400,000. The bonds pay interest on March 31 and September 30, and Roland amortizes any premium...
-
. Donna Clark opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $5,700, Accounts Receivable $1,500, Supplies $500, Equipment $6,500, Accounts Payable $3,900, and...
-
In the series connection below, what are the respective power consumptions of R, R2, and R3? R R www 4 V=6V P1-3 W; P2=3W; and P3= 3 W OP10.5 W; P2-1 W; and P3= 1.5 W P1=1.5 W; P2=1 W; and P3= 0.5 W...
-
Interpret favorable variance (Learning Objective 5) Exhibit 10-20 shows that the Mexican sauces product line had a favorable marketing expense variance. Does this favorable variance necessarily mean...
-
Prepare inventory, purchases, and cost of goods sold budget (Learning Objective 2) Leno sells tire rims. Its sales budget for the nine months ended September 30 follows: In the past, cost of goods...
-
Prepare summary performance report (Learning Objective 1) Hanna White owns a chain of travel goods stores. Last year, her sales staff sold 10,000 suitcases at an average sales price of $150. Variable...
Study smarter with the SolutionInn App