ces Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 13,300 Cost of goods sold 4,160 Other expenses 4,087 Depreciation 2,578 Earnings before interest and taxes (EBIT) $ 2,475 Interest expense 695 Income before tax Taxes (at 30%) Net income Dividends $ 1,780 534 $ 1,246 $ 876 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities Receivables Inventories Other current assets Total current assets 91 160 2,482 2,530 197 248 877 942 Net property, plant, and equipment Other long-term assets $ 3,647 19,993 4,236 $ 3,880 19,935 3,790 Total assets Liabilities and shareholders' equity Payables Short-term debt Other current liabilities Total current liabilities $ 27,876 $ 27,605 $ 2,584 1,429 821 $ 3,060 1,583 797 5.440