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Here are simplified financial statements for Phone Corporation in a recent year. INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Other

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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 Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 30%) Net income Dividends $ 14,000 4,510 4,212 2,788 $ 2,490 738 $ 1,760 528 $ 1,232 $ 946 BALANCE SHEET (Figures in $ millions) End of Year Start of Year $ $ Assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Het property, plant, and equipment 98 2,832 232 912 167 2,670 283 977 4,097 20.005 A VA 20,863 Brey 5 of 10 Next BALANCE SHEET (Figures in $ millions) End of Year Start of Year 98 2,832 232 912 4,074 20,063 4,386 $ 28,443 $ 167 2,670 283 977 4,097 20,005 3,860 $ 27,962 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 $ 2,654 1,464 856 $ 4,974 4,777 6,268 12,424 $ 28, 443 $ 3, 130 1,618 832 $ 5,580 5,222 6,239 10,921 $ 27,962

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