Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 13,400 Cost of goods sold 4,210 Other expenses Depreciation 4,102 2,608 Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 30%) Net income Dividends BALANCE SHEET (Figures in $ millions) $ 2,480 788 $ 1,780 534 $ 1,246 $ 886 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 End of Year Start of Year $ 92 $ 161 2,532 2,550 202 253 882 947 $ 3,911 19,945 3,800 $ 3,708 20,003 4,246 $27,656 $ 3,070 1,588 802 $ 27,957 $ 2,594 1,434 826 $ 4,854 $ 5,460 6,271 6,296 6,208 6,179 10,624 9,721 $27,957 $ 27,656 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.) a. b. C. d. e. Answer is complete but not entirely correct. Return on equity (use average balance sheet figures) Return on assets (use average balance sheet figures) Return on capital (use average balance sheet figures) Days in inventory (use start-of-year balance sheet figures) Inventory turnover (use start-of-year balance sheet figures) Average collection period (use start-of-year balance sheet figures) Operating profit margin Long-term debt ratio (use end-of-year balance sheet figures) Total debt ratio (use end-of-year balance sheet figures) Times interest earned 12.25% 6.24 % 10.54% 21.93 days 16.64 69.46 days f. 12.96 % g. 0.37 h. i. 0.62 3.54 j. k. Cash coverage ratio 7.27 I. Current ratio (use end-of-year balance sheet figures) 0.76 m. Quick ratio (use end-of-year balance sheet figures) 0.67 x