Question

   INCOME STATEMENT
(Figures in $ millions)  Net sales$ 12,900    Cost of goods sold3,910    Other expenses4,132    Depreciation2,428      Earnings before interest and taxes (EBIT)$ 2,430    Interest expense670     Income before tax$ 1,760    Taxes (at 35%)616     Net income$ 1,144    Dividends$ 846     BALANCE SHEET(Figures in $ millions)  End of Year Start of Year   Assets              Cash and marketable securities $86  $155       Receivables  2,232   2,430       Inventories   172   223       Other current assets  852   917              Total current assets $3,342  $3,725       Net property, plant, and equipment  19,943   19,885       Other long-term assets  4,186   3,740              Total assets $27,471  $27,350        Liabilities and shareholders’ equity              Payables $2,534  $3,010       Short-term debt  1,404   1,558       Other current liabilities  796   772              Total current liabilities $4,734  $5,340       Long-term debt and leases  7,765   7,370       Other long-term liabilities  6,148   6,119       Shareholders’ equity  8,824   8,521              Total liabilities and shareholders’ equity $27,471  $27,350        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.) dayse.Inventory turnover (Use beginning inventory.) f.Average collection period (Use beginning receivables.) daysg.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.)   

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