Question
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
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)days
e.Inventory turnover (use start-of-year balance sheet figures)
f.Average collection period (use start-of-year balance sheet figures)days
g.Operating profit margin%
h.Long-term debt ratio (use end-of-year balance sheet figures)
i.Total debt ratio (use end-of-year balance sheet figures)
j.Times interest earned
k.Cash coverage ratio
l.Current ratio (use end-of-year balance sheet figures)
m.Quick ratio (use end-of-year balance sheet figures)
Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 30%) Net income Dividends $ 13,000 3,960 4,037 2,458 $ 2,545 675 $ 1,870 561 $ 1,309 $ 856 BALANCE SHEET (Figures in $ millions) End of Year Start of Year 87 2,282 177 857 3,403 19,953 4,196 $ 27,552 $ 156 2,450 228 922 $ 3,756 19,895 3,750 $ 27,401 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 Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 2,544 1,409 801 $ 4,754 7,516 6,158 9,124 $ 27,552 $ 3,020 1,563 777 $ 5,360 7,191 6,129 8,721 $ 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
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