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Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 13,300 Cost of goods
Here are simplified financial statements for Phone Corporation in a recent year:
INCOME STATEMENT | ||
(Figures in $ millions) | ||
Net sales | $ | 13,300 |
Cost of goods sold | 4,160 | |
Other expenses | 4,087 | |
Depreciation | 2,578 | |
Earnings before interest and taxes (EBIT) | $ | 2,475 |
Interest expense | 695 | |
Income before tax | $ | 1,780 |
Taxes (at 30%) | 534 | |
Net income | $ | 1,246 |
Dividends | $ | 876 |
BALANCE SHEET | |||||||
(Figures in $ millions) | |||||||
End of Year | Start of Year | ||||||
Assets | |||||||
Cash and marketable securities | $ | 91 | $ | 160 | |||
Receivables | 2,482 | 2,530 | |||||
Inventories | 197 | 248 | |||||
Other current assets | 877 | 942 | |||||
Total current assets | $ | 3,647 | $ | 3,880 | |||
Net property, plant, and equipment | 19,993 | 19,935 | |||||
Other long-term assets | 4,236 | 3,790 | |||||
Total assets | $ | 27,876 | $ | 27,605 | |||
Liabilities and shareholders equity | |||||||
Payables | $ | 2,584 | $ | 3,060 | |||
Short-term debt | 1,429 | 1,583 | |||||
Other current liabilities | 821 | 797 | |||||
Total current liabilities | $ | 4,834 | $ | 5,440 | |||
Long-term debt and leases | 6,520 | 6,475 | |||||
Other long-term liabilities | 6,198 | 6,169 | |||||
Shareholders equity | 10,324 | 9,521 | |||||
Total liabilities and shareholders equity | $ | 27,876 | $ | 27,605 | |||
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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