Question
Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 12,500 Cost of goods
Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 12,500 Cost of goods sold 3,710 Other expenses 4,112 Depreciation 2,308 Earnings before interest and taxes (EBIT) $ 2,370 Interest expense 650 Income before tax $ 1,720 Taxes (at 30%) 516 Net income $ 1,204 Dividends $ 806 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities $ 82 $ 151 Receivables 2,032 2,350 Inventories 152 203 Other current assets 832 897 Total current assets $ 3,098 $ 3,601 Net property, plant, and equipment 19,903 19,845 Other long-term assets 4,146 3,700 Total assets $ 27,147 $ 27,146 Liabilities and shareholders equity Payables $ 2,494 $ 2,970 Short-term debt 1,384 1,538 Other current liabilities 776 752 Total current liabilities $ 4,654 $ 5,260 Long-term debt and leases 8,761 8,086 Other long-term liabilities 6,108 6,079 Shareholders equity 7,624 7,721 Total liabilities and shareholders equity $ 27,147 $ 27,146 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.)
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