Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
LINE (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 $ 13, 100 4,010 4,042 2,488 $ 2,560 680 $ 1,880 564 $ 1,316 866 BALANCE SHEET (Figures in $ millions) End of Year Start of Year 88 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 2,332 182 862 $ 3,464 19,963 4,206 $ 27,633 $ 157 2,470 233 927 $ 3,787 19,905 3,760 $ 27, 452 $ 2,554 1,414 806 $ 4,774 7, 267 6,168 9,424 $ 27,633 $ 3,030 1,568 782 $ 5,380 7,012 6,139 8,921 $ 27,452 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.) 23 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 figures) 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) 1. Total debt ratio (uso end-of-year balance sheet figures) J. Times interest eamed k. Cash coverage ratio . Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) 14.35% 6.51% % 21.20 days 17.21 days % 5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Futures Markets

Authors: Robert Kolb, James Overdahl

6th Edition

1405134038, 9781405134033

More Books

Students also viewed these Finance questions

Question

what is cloud computing?

Answered: 1 week ago