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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 35%) Net income Dividends $ 12,300 3,610 4,022 2,248 $ 2,420 640 $ 1,780 623 $ 1,157 $ 756 BALANCE SHEET (Figures in $ 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 receta $ 80 1,932 142 822 2,976 19,883 4,126 $26.95 $ 149 2,310 193 887 $ 3,539 19,825 3,680 $27 044 vo BALANCE SHEET (Figures in $ 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 80 1,932 142 822 $ 2,976 19,883 4,126 $ 26,985 $ 149 2,310 193 887 $ 3,539 19,825 3,680 $ 27,044 $ 2,474 1,374 766 $ 4,614 9,259 6,088 7,024 $ 26,985 $ 2,950 1,528 742 $ 5,220 8,444 6,059 7,321 $ 27,044 Calculate the following financial ratios for Phone Corporation: (Use 365 days in a year. Do not rou calculations. Round your final answers to 2 decimal places.) nces days % f. Average collection period (use start-of-year balance sheet figures) g. Operating profit margin h. Long-term debt ratio (use end-of-year balance sheet figures) 1. Total debt ratio (use end-of-year balance sheet figures) J. Times interest earned k. Cash coverage ratio Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) 1

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