Reference no: EM132523515

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

INCOME STATEMENT(Figures in $ millions)

Net sales$13,300

Cost of goods sold 4,160

Other expenses 4,087

Depreciation 2,578

Earnings before interest and taxes (EBIT)$2,475

Interest expense 695

Income before tax$1,780

Taxes (at 30%) 534

Net income$1,246

Dividends$876

BALANCE SHEET(Figures in $ millions)

End of Year---- Start of Year

Assets

Cash and marketable securities$91 $160

Receivables 2,482 2,530

Inventories 197 248

Other current assets 877 942

Total current assets$3,647 $3,880

Net property, plant, and equipment 19,993 19,935

Other long-term assets 4,236 3,790

Total assets$27,876 $27,605

Liabilities and shareholders' equity

Payables$2,584 $3,060

Short-term debt 1,429 1,583

Other current liabilities 821 797

Total current liabilities$4,834 $5,440

Long-term debt and leases 6,520 6,475

Other long-term liabilities 6,198 6,169

Shareholders' equity 10,324 9,521

Total liabilities and shareholders' equity$27,876 $27,605

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)_____

i.Total debt ratio (use end-of-year balance sheet figures)_____

j.Times interest earned_____

k.Cash coverage ratio_____

l.Current ratio (use end-of-year balance sheet figures)_____

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