Homework answers / question archive / Here are simplified financial statements for Phone Corporation in a recent year:   INCOME STATEMENT(Figures in $ millions)Net sales$14,000Cost of goods sold 4,510Other expenses 4,212Depreciation 2,788Earnings before interest and taxes (EBIT)$2,490Interest expense 730Income before tax$1,760Taxes (at 30%) 528Net income$1,232Dividends$946    BALANCE SHEET(Figures in $ millions) End of Year Start of YearAssets       Cash and marketable securities$98  $167 Receivables 2,832   2,670 Inventories 232   283 Other current assets 912   977 Total current assets$4,074  $4,097 Net property, plant, and equipment 20,063   20,005 Other long-term assets 4,306   3,860 Total assets$28,443  $27,962 Liabilities and shareholders' equity       Payables$2,654  $3,130 Short-term debt 1,464   1,618 Other current liabilities 856   832 Total current liabilities$4,974  $5,580 Long-term debt and leases 4,777   5,222 Other long-term liabilities 6,268   6,239 Shareholders' equity 12,424   10,921 Total liabilities and shareholders' equity$28,443  $27,962    Calculate the following financial ratios for Phone Corporation: (Use 365 days in a year

Here are simplified financial statements for Phone Corporation in a recent year:   INCOME STATEMENT(Figures in $ millions)Net sales$14,000Cost of goods sold 4,510Other expenses 4,212Depreciation 2,788Earnings before interest and taxes (EBIT)$2,490Interest expense 730Income before tax$1,760Taxes (at 30%) 528Net income$1,232Dividends$946    BALANCE SHEET(Figures in $ millions) End of Year Start of YearAssets       Cash and marketable securities$98  $167 Receivables 2,832   2,670 Inventories 232   283 Other current assets 912   977 Total current assets$4,074  $4,097 Net property, plant, and equipment 20,063   20,005 Other long-term assets 4,306   3,860 Total assets$28,443  $27,962 Liabilities and shareholders' equity       Payables$2,654  $3,130 Short-term debt 1,464   1,618 Other current liabilities 856   832 Total current liabilities$4,974  $5,580 Long-term debt and leases 4,777   5,222 Other long-term liabilities 6,268   6,239 Shareholders' equity 12,424   10,921 Total liabilities and shareholders' equity$28,443  $27,962    Calculate the following financial ratios for Phone Corporation: (Use 365 days in a year

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Here are simplified financial statements for Phone Corporation in a recent year:

INCOME STATEMENT(Figures in $ millions)Net sales$14,000Cost of goods sold 4,510Other expenses 4,212Depreciation 2,788Earnings before interest and taxes (EBIT)$2,490Interest expense 730Income before tax$1,760Taxes (at 30%) 528Net income$1,232Dividends$946

BALANCE SHEET(Figures in $ millions) End of Year Start of YearAssets       Cash and marketable securities$98  $167 Receivables 2,832   2,670 Inventories 232   283 Other current assets 912   977 Total current assets$4,074  $4,097 Net property, plant, and equipment 20,063   20,005 Other long-term assets 4,306   3,860 Total assets$28,443  $27,962 Liabilities and shareholders' equity       Payables$2,654  $3,130 Short-term debt 1,464   1,618 Other current liabilities 856   832 Total current liabilities$4,974  $5,580 Long-term debt and leases 4,777   5,222 Other long-term liabilities 6,268   6,239 Shareholders' equity 12,424   10,921 Total liabilities and shareholders' equity$28,443  $27,962 

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.)

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) . days e. Inventory turnover (use start-of-year balance sheet figures) . f. Average collection period (use start-of-year balance sheet figures) . days g. Operating profit margin . h. Long-term debt ratio (use end-of-year balance sheet figures) . Total debt ratio (use end-of-year balance sheet figures) . j. Times interest earned . k. Cash coverage ratio . I. Current ratio (use end-of-year balance sheet figures) . E  Quick ratio (use end-of-year balance sheet figures) .