Question

INCOME STATEMENT (Figures in $ millions) Net sales $ 12,600 Cost of goods sold 3,760 Other expenses 4,127 Depreciation 2,388 Earnings before interest and taxes (EBIT) $ 2,375 Interest expense 655 Income before tax $ 1,720 Taxes (at 30%) 602 Net income $ 1,118 Dividends $ 816 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities $ 83 $ 152 Receivables 2,082 2,370 Inventories 157 208 Other current assets 837 902 Total current assets $ 3,159 $ 3,632 Net property, plant, and equipment 19,913 19,855 Other long-term assets 4,156 3,710 Total assets $ 27,228 $ 27,197 Liabilities and shareholders’ equity Payables $ 2,504 $ 2,980 Short-term debt 1,389 1,543 Other current liabilities 781 757 Total current liabilities $ 4,674 $ 5,280 Long-term debt and leases 8,512 7,907 Other long-term liabilities 6,118 6,089 Shareholders’ equity 7,924 7,921 Total liabilities and shareholders’ equity $ 27,288 $ 27,197 Calculate the following financial ratios for Phone Corporation: (Use 365 days in a year. Do not round intermediate calculations. Round your percentage answers "Return on equity", "Return on assets", Return on capital" and "Operating profit margin" to 2 decimal places and the rest to 2 decimal places.) a. Return on equity (Use average equity.) % b. Return on assets (Use after-tax operating income and average assets.) % c. Return on capital (Use after-tax operating income and average capital.) % d. Days in inventory (Use beginning inventory.) days e. Inventory turnover (Use beginning inventory.) f. Average collection period (Use beginning receivables.) days g. Operating profit margin (Use after-tax operating income.) % h. Long-term debt ratio (Use end of year values.) i. Total debt ratio (Use end of year values.) j. Times interest earned k. Cash coverage ratio l. Current ratio (Use end of year values.) m. Quick ratio (Use end of year values.) Please show step by step how you have arrived at each answer. thank you

Answer 1