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Here are simplified financial statements of phone corporation from a recent year: Income Statement (millions of dollars) Net sales 13,223 Cost of goods sold 4,030
Here are simplified financial statements of phone corporation from a recent year:
Income Statement (millions of dollars) | |
Net sales | 13,223 |
Cost of goods sold | 4,030 |
Other expenses | 4,079 |
Depreciation | 2,488 |
Earnings before interest and taxes (EBIT) | 2,626 |
Interest expenses | 715 |
Income before tax | 1,911 |
Taxes | 540 |
Net income | 1,371 |
Dividends | 841 |
Statement of Financial Position (millions of dollars) | |||
End of Year | Start of Year | ||
Assets: | |||
Cash and marketable securities | 104 | 173 | |
Receivables | 2,352 | 2,460 | |
Inventories | 202 | 253 | |
Other current assets | 852 | 917 | |
Total current assets | 3,510 | 3,803 | |
Net property, plant, and equipment | 19,943 | 19,885 | |
Other long-term assets | 4,231 | 3,785 | |
Total assets | 27,684 | 27,473 | |
Liabilities and shareholders' equity: | |||
Payables | 2,579 | 3,055 | |
Short-term debt | 1,404 | 1,558 | |
Other current liabilities | 826 | 802 | |
Total current liabilities | 4,809 | 5,415 | |
Long-term debt and leases | 7,078 | 6,803 | |
Other long-term liabilities | 6,193 | 6,164 | |
Shareholders' equity | 9,604 | 9,091 | |
Total liabilities and shareholders' equity | 27,684 | 27,473 | |
Calculate the following financial ratios. Assume 365 days in the year. In case either the value of the asset at the start of the year or at the end of the year may be used to calculate a ratio, use the year-end value in your calculations.(Do not round intermediate calculations. Round your final answers to 2 decimal places.)
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