Problem $4-7$ Financial Ratios $($LO$3)$

Here are simplified financial statements for Phone Corporation in $2020$:

INCOME STATEMENT

$($Figures in $ millions$)$

Net sales $ $13,193$

Cost of goods sold $4,060$

Other expenses $4,049$

Depreciation $2,518$

Earnings before interest and taxes $($EBIT$)$ $ $2,566$

Interest expense $685$

Income before tax $ $1,881$

Taxes $($at $21\%)395$

Net income $ $1,486$

Dividends $ $1,040$

BALANCE SHEET

$($Figures in $ millions$)$

End of Year Start of Year

Assets

Cash and marketable securities $ $89$ $ $158$

Receivables $2,3822,490$

Inventories $187238$

Other current assets $867932$

Total current assets $ $3,525$ $ $3,818$

Net property, plant, and equipment $19,97319,915$

Other long$-$term assets $4,2163,770$

Total assets $ $27,714$ $ $27,503$

Liabilities and shareholders$$ equity

Payables $ $2,564$ $ $3,040$

Short$-$term debt $1,4191,573$

Other current liabilities $811787$

Total current liabilities $ $4,794$ $ $5,400$

Long$-$term debt and leases $7,0186,833$

Other long$-$term liabilities $6,1786,149$

Shareholders$$ equity $9,7249,121$

Total liabilities and shareholders$$ equity $ $27,714$ $ $27,503$

Calculate the following financial ratios for Phone Corporation:

Note: Use $365$ days in a year. Do not round intermediate calculations. Round your final answers to $2$ decimal places.

$.$ Return on equity $($use average balance sheet figures$)15\mathrm{.}77$selected 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 start$-$of$-$year balance sheet figures$)$ not attempted days

e$.$ Inventory turnover $($use start$-$of$-$year balance sheet figures$)$ not attempted

f$.$ Average collection period $($use start$-$of$-$year balance sheet figures$)$ not attempted days

g$.$ Operating profit margin not attempted $\%$

h$.$ Long$-$term debt ratio $($use end$-$of$-$year balance sheet figures$)$ not attempted

i$.$ Total debt ratio $($use end$-$of$-$year balance sheet figures$)$ not attempted

j$.$ Times interest earned not attempted

k$.$ Cash coverage ratio not attempted

l$.$ Current ratio $($use end$-$of$-$year balance sheet figures$)$ not attempted

m$.$ Quick ratio $($use end$-$of$-$year balance sheet figures$)$