Here are simplied nancial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $13,700 Cost of goods sold 4,360 Other expenses 4.047 Depreciation 2,698 Earnings before interest and taxes (EBIT) $ 2,595 Interest expense 715 Income before tax $ 1,880 Taxes (at 35%) 658 Net income $ 1,222 Dividends $ 915 BALANCE SHEET (Figures in $ millions) End of Year Assets Cash and marketable securities $ 95 Receivables 2,682 Inventories 217 Other current assets 897 Total current assets $ 3,891 Net property, plant, and equipment 20,033 Other long-term assets 4,276 Total assets $ 28,200 Liabilities and shareholders' equity Payables $ 2,624 Shortterm debt 1,449 Other current liabilities 841 Total current liabilities $ 4,914 Longterm debt and leases 5,524 Other longterm liabilities 6,238 Shareholders' equity 11,524 Total liabilities and shareholders' equity $ 28. 200 Start of Year $ 164 2,610 268 962 $ 4,004 19,975 3,830 $ 27,309 $ 3,100 1,603 817 $ 5,520 5,759 6,209 10,321 $ 27,809