Here are simplified financial statements for Phone Corporation in a recent year: 1 INCOME STATEMENT Pigures in $ millions) Net sales Cost of goods sola Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 351) Net income Dividends $ 13,800 4,410 4,182 2,728 $ 2,480 720 $ 1,760 616 $ 1,144 $ 926 BALANCE SHEET (Figures in 5 millions) End of Year Start of Year 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 $ 96 2,732 222 902 $ 3,952 20,043 6,286 $ 28,281 $ 165 2,630 273 967 5 4.035 19,985 3.840 $ 27,860 $ 2,634 1,454 846 $ 4,934 5,275 5,248 11.824 $.28,281 $ 3,110 1.608 822 $ 5,560 5.580 6,219 10.522 $ 27,860 g. Operating profit margin h. Long-term debt ratio (use end-of-year balance sheet figures) Total debt ratio (uso end-of-year balance sheet figures) Times interest eamed K Cash coverage ratio L. Current ratio (use end-of-your balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures)