Calculate the financial ratios for phone corporation.

a. Return on equity b. Return on assets c. Return on capital d. Days in inventory e Inventory turnover f. Average collection period g. Operating profit margin h. Long-term debt ratio i. Total debt ratio j. Times interest earned k. Cash coverage ratio l. Current ratio m. Quick ratio.

Income Statement (figures in $ millions)

Net Sales 13,193

Cost of good sold 4,060

Other expenses 4,049

Depreciation 2,518

EBIT 2,566

Interest Exp 685

Income before tax 1,881

Taxes (at 35%) 658

Net income 1,223

Dividends 856

Balance Sheet (figures in $ millions) End of Year Start of Year

Cash & marketable securities 89 158

Receivables 2382 2490

Inventories 187 238

Other current assets 867 932

Total current assets 3525 3818

Net property, plant & equip. 19,973 19,915

Other long-term assets 4,216 3,770

Total assets 27,714 27,503

Liabilities and shareholder's equity

Payables 2,564 3,040

Short-term debt 1,419 1,573

Other current liabilities 811 787

Total current liabilities 4,794 5,400

Longer-term debt & leases 7,018 6,833

Other long-term liabilities 6,178 6,149

Shareholder's equity 9,724 9,121

Total liabilities & shareholder's equity 27,714 27,503