Here are simplified financial statements of Phone Corporation from a recent year: INCOME STATEMENT (Figures in millions of dollars) Net sales 13,700 Cost of goods sold 4,360 Other expenses 4,047 Depreciation 2,698 ________________________________________ Earnings before interest and taxes (EBIT) 2,595 Interest expense 715 ________________________________________ Income before tax 1,880 Taxes (at 35%) 658 ________________________________________ Net income 1,222 Dividends 916 ________________________________________________________________________________ ________________________________________ BALANCE SHEET (Figures in millions of dollars) End of Year Start of Year Assets Cash and marketable securities 95 164 Receivables 2,682 2,610 Inventories 217 268 Other current assets 897 962 ________________________________________ ________________________________________ Total current assets 3,891 4,004 Net property, plant, and equipment 20,033 19,975 Other long-term assets 4,276 3,830 ________________________________________ ________________________________________ Total assets 28,200 27,809 ________________________________________________________________________________ ________________________________________________________________________________ Liabilities and shareholders