Here are simplified financial statements of Phone Corporation from a recent year:

INCOME STATEMENT (Figures in millions of dollars)
Net sales	13,100
Cost of goods sold	4,010
Other expenses	4,042
Depreciation	2,488
Earnings before interest and taxes (EBIT)	2,560
Interest expense	680
Income before tax	1,880
Taxes (at 30%)	564
Net income	1,316
Dividends	866

BALANCE SHEET (Figures in millions of dollars)
	End of Year	Start of Year
Assets
Cash and marketable securities	88	157
Receivables	2,332	2,470
Inventories	182	233
Other current assets	862	927
Total current assets	3,464	3,787
Net property, plant, and equipment	19,963	19,905
Other long-term assets	4,206	3,760
Total assets	27,633	27,452
Liabilities and shareholders