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Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 12,900 Cost of goods
Here are simplified financial statements for Phone Corporation in a recent year:
INCOME STATEMENT | ||
(Figures in $ millions) | ||
Net sales | $ | 12,900 |
Cost of goods sold | 3,910 | |
Other expenses | 4,132 | |
Depreciation | 2,428 | |
Earnings before interest and taxes (EBIT) | $ | 2,430 |
Interest expense | 670 | |
Income before tax | $ | 1,760 |
Taxes (at 35%) | 616 | |
Net income | $ | 1,144 |
Dividends | $ | 846 |
BALANCE SHEET | |||||||
(Figures in $ millions) | |||||||
End of Year | Start of Year | ||||||
Assets | |||||||
Cash and marketable securities | $ | 86 | $ | 155 | |||
Receivables | 2,232 | 2,430 | |||||
Inventories | 172 | 223 | |||||
Other current assets | 852 | 917 | |||||
Total current assets | $ | 3,342 | $ | 3,725 | |||
Net property, plant, and equipment | 19,943 | 19,885 | |||||
Other long-term assets | 4,186 | 3,740 | |||||
Total assets | $ | 27,471 | $ | 27,350 | |||
Liabilities and shareholders equity | |||||||
Payables | $ | 2,534 | $ | 3,010 | |||
Short-term debt | 1,404 | 1,558 | |||||
Other current liabilities | 796 | 772 | |||||
Total current liabilities | $ | 4,734 | $ | 5,340 | |||
Long-term debt and leases | 7,765 | 7,370 | |||||
Other long-term liabilities | 6,148 | 6,119 | |||||
Shareholders equity | 8,824 | 8,521 | |||||
Total liabilities and shareholders equity | $ | 27,471 | $ | 27,350 | |||
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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