Here are simplified financial statements for Phone Corporation in a recent year:

INCOME STATEMENT
(Figures in $ millions)
Net sales	$	13,000
Cost of goods sold		3,960
Other expenses		4,037
Depreciation		2,458
Earnings before interest and taxes (EBIT)	$	2,545
Interest expense		675
Income before tax	$	1,870
Taxes (at 30%)		561
Net income	$	1,309
Dividends	$	856

BALANCE SHEET
(Figures in $ millions)
	End of Year				Start of Year
Assets
Cash and marketable securities	$	87			$	156
Receivables		2,282				2,450
Inventories		177				228
Other current assets		857				922
Total current assets	$	3,403			$	3,756
Net property, plant, and equipment		19,953				19,895
Other long-term assets		4,196				3,750
Total assets	$	27,552			$	27,401
Liabilities and shareholders equity
Payables	$	2,544			$	3,020
Short-term debt		1,409				1,563
Other current liabilities		801				777
Total current liabilities	$	4,754			$	5,360
Long-term debt and leases		7,516				7,191
Other long-term liabilities		6,158				6,129
Shareholders equity		9,124				8,721
Total liabilities and shareholders equity	$	27,552			$	27,401

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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Item 14

Item 14 0.5 points

Here are simplified financial statements for Phone Corporation in a recent year:

INCOME STATEMENT
(Figures in $ millions)
Net sales	$	13,000
Cost of goods sold		3,960
Other expenses		4,037
Depreciation		2,458
Earnings before interest and taxes (EBIT)	$	2,545
Interest expense		675
Income before tax	$	1,870
Taxes (at 30%)		561
Net income	$	1,309
Dividends	$	856

BALANCE SHEET
(Figures in $ millions)
	End of Year				Start of Year
Assets
Cash and marketable securities	$	87			$	156
Receivables		2,282				2,450
Inventories		177				228
Other current assets		857				922
Total current assets	$	3,403			$	3,756
Net property, plant, and equipment		19,953				19,895
Other long-term assets		4,196				3,750
Total assets	$	27,552			$	27,401
Liabilities and shareholders equity
Payables	$	2,544			$	3,020
Short-term debt		1,409				1,563
Other current liabilities		801				777
Total current liabilities	$	4,754			$	5,360
Long-term debt and leases		7,516				7,191
Other long-term liabilities		6,158				6,129
Shareholders equity		9,124				8,721
Total liabilities and shareholders equity	$	27,552			$	27,401

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.)

Find the following: (Note, this problem was already solved, however, all the answers were not correct. Part a is the only correct answer you had.

a. ROE _________14.76__________% is the only correct answer in the solutions that were already solved. All others are incorrect.

b. Return on assets ____________%

c. Return on capital ____________%

d. Days in inventory ___________days.

e. Inventory turnover _____________

f. Average collection period ____________days

g. Operating profit margin _____________

h. Long term debt ratio _______________

i. Total debt ratio ______________.

j. Times interest earned ______________

k. Cash coverage ratio ______________

l. Current ratio _______________

m. Quick ratio ___________________