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Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 12,200 Cost of goods
Here are simplified financial statements for Phone Corporation in a recent year:
INCOME STATEMENT | ||
(Figures in $ millions) | ||
Net sales | $ | 12,200 |
Cost of goods sold | 3,560 | |
Other expenses | 4,037 | |
Depreciation | 2,218 | |
Earnings before interest and taxes (EBIT) | $ | 2,385 |
Interest expense | 635 | |
Income before tax | $ | 1,750 |
Taxes (at 30%) | 525 | |
Net income | $ | 1,225 |
Dividends | $ | 746 |
BALANCE SHEET | |||||||
(Figures in $ millions) | |||||||
End of Year | Start of Year | ||||||
Assets | |||||||
Cash and marketable securities | $ | 79 | $ | 148 | |||
Receivables | 1,882 | 2,290 | |||||
Inventories | 137 | 188 | |||||
Other current assets | 817 | 882 | |||||
Total current assets | $ | 2,915 | $ | 3,508 | |||
Net property, plant, and equipment | 19,873 | 19,815 | |||||
Other long-term assets | 4,116 | 3,670 | |||||
Total assets | $ | 26,904 | $ | 26,993 | |||
Liabilities and shareholders equity | |||||||
Payables | $ | 2,464 | $ | 2,940 | |||
Short-term debt | 1,369 | 1,523 | |||||
Other current liabilities | 761 | 737 | |||||
Total current liabilities | $ | 4,594 | $ | 5,200 | |||
Long-term debt and leases | 9,508 | 8,623 | |||||
Other long-term liabilities | 6,078 | 6,049 | |||||
Shareholders equity | 6,724 | 7,121 | |||||
Total liabilities and shareholders equity | $ | 26,904 | $ | 26,993 | |||
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.)
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