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Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 13,500 Cost of goods
Here are simplified financial statements for Phone Corporation in a recent year:
INCOME STATEMENT | ||
(Figures in $ millions) | ||
Net sales | $ | 13,500 |
Cost of goods sold | 4,260 | |
Other expenses | 4,147 | |
Depreciation | 2,638 | |
Earnings before interest and taxes (EBIT) | $ | 2,455 |
Interest expense | 705 | |
Income before tax | $ | 1,750 |
Taxes (at 30%) | 525 | |
Net income | $ | 1,225 |
Dividends | $ | 896 |
BALANCE SHEET | |||||||
(Figures in $ millions) | |||||||
End of Year | Start of Year | ||||||
Assets | |||||||
Cash and marketable securities | $ | 93 | $ | 162 | |||
Receivables | 2,582 | 2,570 | |||||
Inventories | 207 | 258 | |||||
Other current assets | 887 | 952 | |||||
Total current assets | $ | 3,769 | $ | 3,942 | |||
Net property, plant, and equipment | 20,013 | 19,955 | |||||
Other long-term assets | 4,256 | 3,810 | |||||
Total assets | $ | 28,038 | $ | 27,707 | |||
Liabilities and shareholders equity | |||||||
Payables | $ | 2,604 | $ | 3,080 | |||
Short-term debt | 1,439 | 1,593 | |||||
Other current liabilities | 831 | 807 | |||||
Total current liabilities | $ | 4,874 | $ | 5,480 | |||
Long-term debt and leases | 6,022 | 6,117 | |||||
Other long-term liabilities | 6,218 | 6,189 | |||||
Shareholders equity | 10,924 | 9,921 | |||||
Total liabilities and shareholders equity | $ | 28,038 | $ | 27,707 | |||
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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