Here are simplified financial statements for Phone Corporation in a recent year INCOME STATEMENT Figures in S millions) Net sales Cost of goods sold Other expenses Depreciation S 13,200 4,110 4,072 2,548 Earnings before interest and taxes (EBIT) Interest expense S2,470 690 Income before tax Taxes (at 35%) S 1,780 623 Net income Dividends 1,157 $ 866