Problem 4-7 Financial Ratios (LO3) Here are simplified financial statements for Phone Corporation in 2020: INCOME STATEMENT (Figures in $ millions) Net sales $ 12,400 Cost of goods sold 3,660 Depreciation Other expenses Earnings before interest and taxes (EBIT) Interest expense Income before tax 4,137 2,278 $ 2,325 645 es Net income Dividends Taxes (at 21%) $ 1,680 353 $ 1,327 $ 796 BALANCE SHEET (Figures in $ millions) End of Year Start of Year