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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 30%) Net income Dividends $ 12,400 3,660 4,137 2,278 $ 2,325 645 $ 1,680 504 $ 1,176 $ 796 BALANCE SHEET (Figures in $ millions) End of Year Start of Year $ 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 81 1,982 147 827 $ 3,037 19,893 4,136 $ 27,066 $ 150 2,330 198 892 $ 3,570 19,835 3,690 $ 27,095 $ 2,484 1,379 771 $ 4,634 9,010 6,098 7,324 $ 27,066 $ 2,960 1,533 747 5,240 8,265 6,069 7,521 $ 27,095 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.) % % % days a. Return on equity (use average balance sheet figures) b. Return on assets (use average balance sheet figures) c. Return on capital (use average balance sheet figures) d. Days in inventory (use start-of-year balance sheet figuros) e. Inventory turnover (use start-of-year balance sheet figures) f. Average collection period (use start of year balance sheet figures) g. Operating profit margin h. Long-term debt ratio (use end-of-year balance sheet figures) i. Total debt ratio (use end-of-year balance sheet figures) 1. Times interest earned k. Cash coverage ratio 1. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) days %

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