Reference no: EM132783068

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

INCOME STATEMENT(Figures in $ millions)Net sales$14,100Cost of goods sold 4,560Other expenses 4,217Depreciation 2,818Earnings before interest and taxes (EBIT)$2,505Interest expense 735Income before tax$1,770Taxes (at 30%) 531Net income$1,239Dividends$976

BALANCE SHEET(Figures in $ millions) End of Year Start of YearAssets Cash and marketable securities$99 $168 Receivables 2,882 2,690 Inventories 237 288 Other current assets 917 982 Total current assets$4,135 $4,128 Net property, plant, and equipment 20,073 20,015 Other long-term assets 4,316 3,870 Total assets$28,524 $28,013 Liabilities and shareholders' equity Payables$2,664 $3,140 Short-term debt 1,469 1,623 Other current liabilities 861 837 Total current liabilities$4,994 $5,600 Long-term debt and leases 4,528 5,043 Other long-term liabilities 6,278 6,249 Shareholders' equity 12,724 11,121 Total liabilities and shareholders' equity$28,524 $28,013

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)dayse.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)