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 $13,193 4,060 4,049 2,518 Earnings before interest and taxes (EBIT) Interest expense $ 2,566 685 Income before tax Taxes (at 35%) $1,881 658 Net income Dividends $1,223 $ 856 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities Receivables Inventories Other current assets 2,382 187 867 $89 158 2,490 238 932 Total current assets Net property, plant, and equipment Other long-term assets $ 3,525 19,973 4,216 3,818 19,915 3,770 lotal assets $27,714 27,503 Liabilities and shareholders' equity Payables Short-term debt Other current liabilities $ 2,564 1,419 811 3,040 1,573 787 Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity $ 4,794 7,018 6,178 9,724 5,400 6,833 6,149 9,121 Total liabilities and shareholders' equity $27,714 $ 27,503