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Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 13,193 Cost of goods
Here are simplified financial statements for Phone Corporation in a recent year:
INCOME STATEMENT | ||
(Figures in $ millions) | ||
Net sales | $ | 13,193 |
Cost of goods sold | 4,060 | |
Other expenses | 4,049 | |
Depreciation | 2,518 | |
Earnings before interest and taxes (EBIT) | $ | 2,566 |
Interest expense | 685 | |
Income before tax | $ | 1,881 |
Taxes (at 35%) | 658 | |
Net income | $ | 1,223 |
Dividends | $ | 856 |
BALANCE SHEET | |||||||
(Figures in $ millions) | |||||||
End of Year | Start of Year | ||||||
Assets | |||||||
Cash and marketable securities | $ | 89 | $ | 158 | |||
Receivables | 2,382 | 2,490 | |||||
Inventories | 187 | 238 | |||||
Other current assets | 867 | 932 | |||||
Total current assets | $ | 3,525 | $ | 3,818 | |||
Net property, plant, and equipment | 19,973 | 19,915 | |||||
Other long-term assets | 4,216 | 3,770 | |||||
Total assets | $ | 27,714 | $ | 27,503 | |||
Liabilities and shareholders equity | |||||||
Payables | $ | 2,564 | $ | 3,040 | |||
Short-term debt | 1,419 | 1,573 | |||||
Other current liabilities | 811 | 787 | |||||
Total current liabilities | $ | 4,794 | $ | 5,400 | |||
Long-term debt and leases | 7,018 | 6,833 | |||||
Other long-term liabilities | 6,178 | 6,149 | |||||
Shareholders equity | 9,724 | 9,121 | |||||
Total liabilities and shareholders equity | $ | 27,714 | $ | 27,503 | |||
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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