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Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 13,900 Cost of goods
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
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