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Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Other

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Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 35%) Net income Dividends $ 12, 600 3,760 4,127 2,338 $ 2,375 655 $ 1,720 602 $ 1,118 S 816 tes BALANCE SHEET (Figures in $ millions) End of Year Start of Year $ S 83 2,082 157 837 3, 159 19,913 4, 156 $ 27, 228 Fun Assets Cash and marketable securities Receivables Inventories Other current assets Total Current assets Net property, plant, and equipment Other long-term assets Total assets Liabilities and shareholders' equity Payables Short-term debt Other current abilities Total current liabilities Long-term debt and leases Other long-term 11abilities Shareholders' equity Total abilities and shareholders que 152 2,370 208 902 S3, 632 19,855 3, 710 $ 27, 197 $ $ 2SO4 1,389 781 IS 9.679 512 6118 921 S23228 $ 2, 980 1,543 1757 S5, 280 7907 6,089 792 S 2297 Shareholders' equity Total liabilities and shareholders' equity CH 7,921 $ 27, 228 1.923 $22,197 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.) % days 18.07 a. Return on equity (use average balance sheet figures) b. Return on assets (use average balance sheet figures) c. Return on capital (use average balance sheet figuren) d. Days in inventory (use start of year balance sheet figures) e Inventory turnover (use start of year balance sheet figures) 1. Average collection period (use start of year balance sheet figures) 9. Operating profit margin h. Long-term debt ratio (use end of year balance sheet figures) 1. Total debt ratio (use end-of-year balance sheet figures) 1. Times interest eamed k Cash coverage ratio L. Current ratio (use end-of year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) 68.65 days 0.51 3.62 7.19 067

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