Here are simplified financial statements of Phone Corporation from a recent year: INCOME STATEMENT (Figures in millions of dollars) Net sales 14,100 Cost of goods sold 4,560 Other expenses 4,217 Depreciation 2,818 ________________________________________ Earnings before interest and taxes (EBIT) 2,505 Interest expense 735 ________________________________________ Income before tax 1,770 Taxes (at 30%) 531 ________________________________________ Net income 1,239 Dividends 976 ________________________________________________________________________________ ________________________________________ BALANCE SHEET (Figures in millions of dollars) End of Year Start of Year Assets Cash and marketable securities 99 168 Receivables 2,882 2,690 Inventories 237 288 Other current assets 917 982 ________________________________________ ________________________________________ Total current assets 4,135 4,128 Net property, plant, and equipment 20,073 20,015 Other long-term assets 4,316 3,870 ________________________________________ ________________________________________ Total assets 28,524 28,013 ________________________________________________________________________________ ________________________________________________________________________________ Liabilities and shareholders