4. value: 2.50 points Problem 4-7 Financial Ratios (L03) Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in 5 millions) Net sales $ 12,400 Cost of goods sold 3.660 Other expenses 4,137 Depreciation 2,278 Earnings before interest and taxes (EBIT) $ 2.325 Interest expense 645 Income before tax $ 1.680 Taxes (at 30%) 504 Net income Dividends $ 1,178 $ 798 BALANCE SHEET (Figures in S millions) End of Year Start of Year Assets Cash and marketable securities $ 81 s 150 Receivables 1.982 2.330 Inventories 147 198 Other current assets 827 Total current assets $ 3.037 $ 3.570 Net property, plant, and equipment 19.893 19.835 Other long-term assets 4.136 3.690 892 Total assets $ 27.066 $ 27.095 $ 2.484 1,379 771 $ 2.960 1.533 747 Liabilities and shareholders' equity Payables Short-term debt Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 4.634 9,010 6,098 7.324 $ 5.240 8.265 6.000 7.521 $ 27.088 $ 27.095 Calculate the following financial ratios for Phone Corporation: (Use 365 days in a year. Do not round intermediate calculations. Round your percentage answers "Return on equity", "Return on assets", Return on capital" and "Operating profit margin" to 2 decimal places and the rest to 2 decimal places.) Return on equity (Use ending equity) 15.06 % Return on assets (Use after-tax operating income and ending assets.) 6% Days in inventory (Use ending inventory.) 14.66 days Inventory turnover (Use ending inventory.) 24.91 Average collection period (Use ending receivables.) 58.34 days Operating profit margin (Use after-tax operating income.) 10.54 % Recievable Turnover 5.75 Asset Turnover 4.58