Here are simplified financial statements for Phone Corporation in a recent year:

INCOME STATEMENT
(Figures in $ millions)
Net sales	$	13,900
Cost of goods sold		4,460
Other expenses		4,197
Depreciation		2,758
Earnings before interest and taxes (EBIT)	$	2,485
Interest expense		725
Income before tax	$	1,760
Taxes (at 30%)		528
Net income	$	1,232
Dividends	$	936

BALANCE SHEET
(Figures in $ millions)
	End of Year				Start of Year
Assets
Cash and marketable securities	$	97			$	166
Receivables		2,782				2,650
Inventories		227				278
Other current assets		907				972
Total current assets	$	4,013			$	4,066
Net property, plant, and equipment		20,053				19,995
Other long-term assets		4,296				3,850
Total assets	$	28,362			$	27,911
Liabilities and shareholders equity
Payables	$	2,644			$	3,120
Short-term debt		1,459				1,613
Other current liabilities		851				827
Total current liabilities	$	4,954			$	5,560
Long-term debt and leases		5,026				5,401
Other long-term liabilities		6,258				6,229
Shareholders equity		12,124				10,721
Total liabilities and shareholders equity	$	28,362			$	27,911

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.)

14 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.) 0.5 points % % Skipped % days eBook days Print 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 figures) d. Days in inventory (use start-of-year balance sheet figures) e. Inventory turnover (use start-of-year balance sheet figures) f. Average collection period (use start-of-year balance sheet figures) g. Operating profit margin h. Long-term debt ratio (use end-of-year balance sheet figures) i. Total debt ratio (use end-of-year balance sheet figures) i. Times interest earned k. Cash coverage ratio 1. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) References