3.3 Financial Ratios Based on the balance sheets and income statement in the previous two problems, calculate the following ratios for 2018 Current ratio Quick ratio Cash ratio Inventory turnover Receivables turnover Days' sales in inventory Days' sales in receivables Total debt ratio Long-term debt ratio Times interest earned ratio Cash coverage ratio PHILIPPE CORPORATION 2017 and 2018 Balance Sheets is in millions 2017 2018 $ 215 310 328 $ 853 $6,527 $7.380 Current assets Cash $ 210 Accounts receivable 355 Inventory SOZ Total $1,072 Foxed assets Net plant and equipment $6,085 Total assets $7.157 Liabilities and Owners' Equity Current liabilities Accounts payable $ 207 Notes payable 1,715 Total $1,922 Long-term debt $1,987 Owners' equity Common stock and paid in surplus $1,000 Retained earnings 2,248 Total $3,248 Total liabilities and owners' equity $7,157 $ 298 1,427 $1.725 $2,308 $1,000 2,347 $3,347 $7,380 PHILIPPE CORPORATION 2018 Income Statement ($ in millions) Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net income Dividends $47 Addition to retained earnings 99 $4.053 2,816 550 $ 687 502 $ 185 39 $ 146