Reference no: EM1357000
1. Calculating Ratios. Here are simplified financial statements of Phone Corporation from a recent year:
INCOME STATEMENT
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 expenses 685
Income before tax 1,881
Taxes 570
Net income 1,311
Dividends 856
Nce
(Figures in millions of dollars)
End of Year Start of Year
Assets:
Cash and marketable securities 89 158
Receivables 2,382 2,490
Inventories 187 238
Other current assets 867 932
Total current assets 3,525 3,818
Net property, plant, and equipment 19,973 19,915
Other long-term assets 4,216 3,770
Total assets 27,714 27,503
Liabilities and shareholders' equity:
Payables 2,564 3,040
Short-term debt 1,419 1,573
Other current liabilities 811 787
Total current liabilities 4,794 5,400
Long-term debt and leases 7,018 6,833
Other long-term liabilities 6,178 6,149
Shareholders' equity 9,724 9,121
Total liab.& shareholders' equity 27,714 27,503
1 Calculate the following financial ratios:
a. Long-term debt ratio
b. Total debt ratio
c. Times interest earned
d. Cash coverage ratio
e. Current ratio
f. Quick ratio
g. Operating profit margin
h. Inventory turnover
i. Days in inventory
j. Average collection period
k. Return on equity
l. Return on assets
m. Payout ratio
2. Market Value Ratios. If the market value of Phone Corp. stock was $17.2 billion at the end of the year, what was the market-to-book ratio? If there were 205 million shares outstanding, what were earnings per share? The price-earnings ratio?
|
Alternative ways of recording sales tax
: In providing accounting services to small businesses, you encounter the following situations pertaining to cash sales. Prepare the entries to record the sales transactions and related taxes for (a) Grainger Company and (b) Darby Company.
|
|
What is the tension in the lower wire
: Two wires are tied to the 500 sphere. The sphere revolves in a horiIzontal circle at a constant speed of 6.8.
|
|
Elucidate problem which is posed by any comparison over time
: Elucidate problem which is posed by any comparison over time of the market values of various total outputs? How is this problem resolved.
|
|
Example on corporate intelligence
: "Corporate intelligence is not corporate espionage because 95 percent of the information a company needs to make strategic decisions is available and accessible to the public."
|
|
Determine the market to book ratio
: Here are some simplified financial statements of Phone Corporation from a recent year: If the market value of Phone Corporation stock was $17.2 billion at the end of year, determine the market-to-book ratio?
|
|
Military personnel and their families
: Compare and contrast how working with military personnel and their families is similar to working with any career client and how it might vary.
|
|
Bond journal entries
: Crow Co. issued 493,000 of 10%, 20 yr. bonds on Jan, 1, 2010, at face value. Interest is payable annually on Jan. 1. Prepare journal entries to record the last of the following events:
|
|
Explain key attributes and benefits approaches
: Show the key attributes of total rewards programs and how each contributes to employee performance. Outline a strategy for integrating all of these attributes into an organization's overall approach to total rewards and provide a rationale.
|
|
What is the force require
: Many people mistakenly believe that the astronauts that orbit Earth are "above gravity." Calculate g for space shuttle territory 150 km above Earth's surface. suppose Earth's mass is 6.0 1024 kg, and its radius is 6.38 106 m (6380 km). Your answer..
|