Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 356) Net income Dividends $ 13,193 4,060 4,049 2,518 $ 2,566 685 $ 1,881 658 $ 1,223 $ 856 BALANCE SHEET (Figures in $ millions) End of Year Start of Year 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 liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders equity Total liabilities and shareholders' equity $ 89 2,382 187 867 $ 3,525 19,973 4,216 $ 27, 714 $ 158 2, 490 238 932 $ 3,818 19,915 3, 770 $ 27,503 $ 2,564 1,419 811 $4,794 7,018 6,178 9,724 $ 27,714 $ 3,040 1,572 784 $ 5,400 6,833 6,149 9,121 $ 27,503 Calculate the following financial ratios for Phone Corporation: (Use 365 days in a year. Do not round intermediate Round your final answers to 2 decimal places.) en 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) Times interest eamed k Cash coverage ratio Current to use end-of-year balance sheet figures) m. Od to send of bros sheet figures

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategies For Forex Trading How To Maximizing Your Potential Returns

Authors: Clifton Bemrich

1st Edition

979-8388676955

More Books

Students also viewed these Finance questions