Question
Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT(Figures in $ millions)Net sales$13,000Cost of goods sold3,960Other expenses4,037Depreciation2,458Earnings before interest and
Here are simplified financial statements for Phone Corporation in a recent year:
INCOME STATEMENT(Figures in $ millions)Net sales$13,000Cost of goods sold3,960Other expenses4,037Depreciation2,458Earnings before interest and taxes (EBIT)$2,545Interest expense675Income before tax$1,870Taxes (at 30%)561Net income$1,309Dividends$856
BALANCE SHEET(Figures in $ millions)End of YearStart of YearAssetsCash and marketable securities$87$156Receivables2,2822,450Inventories177228Other current assets857922Total current assets$3,403$3,756Net property, plant, and equipment19,95319,895Other long-term assets4,1963,750Total assets$27,552$27,401Liabilities and shareholders' equityPayables$2,544$3,020Short-term debt1,4091,563Other current liabilities801777Total current liabilities$4,754$5,360Long-term debt and leases7,5167,191Other long-term liabilities6,1586,129Shareholders' equity9,1248,721Total liabilities and shareholders' equity$27,552$27,401
Calculate the following financial ratios for Phone Corporation:(Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started