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INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before

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INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 35%) Net income Dividends $ 13,700 4,360 4,047 2,698 $ 2,595 715 $ 1,880 658 $ 1,222 916 BALANCE SHEET (Figures in $ millions) End of Year Start of Year $ 95 2,682 217 897 $ 3,891 20,033 4,276 $ 28,200 $ 164 2,610 268 962 $ 4,084 19,975 3,830 $ 27,809 Assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Net property, plant, and equipment Other long-term assets Total assets Liabilities and shareholders' equity Payables Short-term debt Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 2,624 1,449 841 $ 4,914 5,524 6,238 11,524 $ 28,200 $ 3, 100 1,603 817 $ 5,520 5,759 6, 209 10,321 $ 27,889 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.) 11.18% 6.02% 10.18% 22.43 days Return on equity (use average balance sheet figures) b. Return on assets (use average balance sheet figures) c. Retum on capital (use average balance sheet figures) d. Days in inventory (use start-of-year balance sheet figures) e Inventory turnover (use start-of-year balance sheet figures) 1. Average collection period (use start-of-year balance sheet figures) 9. Operating profit margin h. Long-term debt ratio (use end-of-year balance sheet figures) L. Total debt ratio (use end-of-year balance sheet figures) Times interesteamed k Cash coverage ratio L. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) days %

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