3 Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Earnings before interest and taxes (EBIT) Other expenses Depreciation Interest expense Income before tax Taxes (at 30%) Net income Dividends $13,500 4,260 4,147 2,638 $ 2,455 705 $ 1,750 525 $ 1,225 $ 896 Receivables BALANCE SHEET (Figures in $ millions) es Assets End of Year Start of Year Cash and marketable securities $ 93 $ 162 2,582 2,570 207 258 887 952 $ 3,769 $ 3,942 20,013 4,256 $28,038 19,955 3,810 $ 27,707 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 $ 2,604 1,439 831 $ 4,874 Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity 6,022 6,218 10,924 $ 28,038 $ 3,080 1,593 807 $ 5,480 6,117 6,189 9,921 $ 27,707 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.) a. Return on equity (use average balance sheet figures) b. Return on assets (use average balance sheet figures) c. Return on capital (use average balance sheet figures) d. Days in inventory (use start-of-year balance sheet figures) e. Inventory turnover (use start-of-year balance sheet figures) f. Average collection period (use start-of-year balance sheet figures). g. Operating profit margin. h. Long-term debt ratio (use end-of-year balance sheet figures) 1. Total debt ratio (use end-of-year balance sheet figures) j. Times interest eamed k. Cash coverage ratio 1. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) 11.75 % 4.40 % % days days %