Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 4 - 7 Financial Ratios ( LO 3 ) Here are simplified financial statements for Phone Corporation in 2 0 2 0 : INCOME
Problem Financial Ratios LO
Here are simplified financial statements for Phone Corporation in :
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
Net income $
Dividends $
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 longterm assets
Total assets $ $
Liabilities and shareholders equity
Payables $ $
Shortterm debt
Other current liabilities
Total current liabilities $ $
Longterm debt and leases
Other longterm liabilities
Shareholders equity
Total liabilities and shareholders equity $ $
Calculate the following financial ratios for Phone Corporation:
Note: Use days in a year. Do not round intermediate calculations. Round your final answers to decimal places.
Return on equity use average balance sheet figuresselected answer correct
b Return on assets use average balance sheet figures not attempted
c Return on capital use average balance sheet figures not attempted
d Days in inventory use startofyear balance sheet figures not attempted days
e Inventory turnover use startofyear balance sheet figures not attempted
f Average collection period use startofyear balance sheet figures not attempted days
g Operating profit margin not attempted
h Longterm debt ratio use endofyear balance sheet figures not attempted
i Total debt ratio use endofyear balance sheet figures not attempted
j Times interest earned not attempted
k Cash coverage ratio not attempted
l Current ratio use endofyear balance sheet figures not attempted
m Quick ratio use endofyear balance sheet figures
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started