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Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 13,800 Cost of goods
Here are simplified financial statements for Phone Corporation in a recent year:
INCOME STATEMENT | ||
(Figures in $ millions) | ||
Net sales | $ | 13,800 |
Cost of goods sold | 4,410 | |
Other expenses | 4,182 | |
Depreciation | 2,728 | |
Earnings before interest and taxes (EBIT) | $ | 2,480 |
Interest expense | 720 | |
Income before tax | $ | 1,760 |
Taxes (at 35%) | 616 | |
Net income | $ | 1,144 |
Dividends | $ | 926 |
BALANCE SHEET | |||||||
(Figures in $ millions) | |||||||
End of Year | Start of Year | ||||||
Assets | |||||||
Cash and marketable securities | $ | 96 | $ | 165 | |||
Receivables | 2,732 | 2,630 | |||||
Inventories | 222 | 273 | |||||
Other current assets | 902 | 967 | |||||
Total current assets | $ | 3,952 | $ | 4,035 | |||
Net property, plant, and equipment | 20,043 | 19,985 | |||||
Other long-term assets | 4,286 | 3,840 | |||||
Total assets | $ | 28,281 | $ | 27,860 | |||
Liabilities and shareholders equity | |||||||
Payables | $ | 2,634 | $ | 3,110 | |||
Short-term debt | 1,454 | 1,608 | |||||
Other current liabilities | 846 | 822 | |||||
Total current liabilities | $ | 4,934 | $ | 5,540 | |||
Long-term debt and leases | 5,275 | 5,580 | |||||
Other long-term liabilities | 6,248 | 6,219 | |||||
Shareholders equity | 11,824 | 10,521 | |||||
Total liabilities and shareholders equity | $ | 28,281 | $ | 27,860 | |||
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.) I GOT THE ANSWERS FROM a-e PLEASE COMPLETE IT FOR ME!!!!!!!!!!!!!!!!!!!
a. | Return on equity (use average balance sheet figures) | 10.24t | % |
b. | Return on assets (use average balance sheet figures) | 5.74 | % |
c. | Return on capital (use average balance sheet figures) | 9.71 | % |
d. | Days in inventory (use start-of-year balance sheet figures) | 22.60 | days |
e. | Inventory turnover (use start-of-year balance sheet figures) | 16.15 | |
f. | Average collection period (use start-of-year balance sheet figures) | days | |
g. | Operating profit margin | % | |
h. | Long-term debt ratio (use end-of-year balance sheet figures) | ||
i. | Total debt ratio (use end-of-year balance sheet figures) | ||
j. | Times interest earned | ||
k. | Cash coverage ratio | ||
l. | Current ratio (use end-of-year balance sheet figures) | ||
m. | Quick ratio (use end-of-year balance sheet figures) |
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