Here are simplified financial statements for Phone Corporation in a recent year: ...
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Accounting
Here are simplified financial statements for Phone Corporation in a recent year:
INCOME STATEMENT
(Figures in $ millions)
Net sales
$
13,800
Cost of goods sold
4,410
Other expenses
4,182
Depreciation
2,728
Earnings before interest and taxes (EBIT)
$
2,480
Interest expense
720
Income before tax
$
1,760
Taxes (at 35%)
616
Net income
$
1,144
Dividends
$
926
BALANCE SHEET
(Figures in $ millions)
End of Year
Start of Year
Assets
Cash and marketable securities
$
96
$
165
Receivables
2,732
2,630
Inventories
222
273
Other current assets
902
967
Total current assets
$
3,952
$
4,035
Net property, plant, and equipment
20,043
19,985
Other long-term assets
4,286
3,840
Total assets
$
28,281
$
27,860
Liabilities and shareholders equity
Payables
$
2,634
$
3,110
Short-term debt
1,454
1,608
Other current liabilities
846
822
Total current liabilities
$
4,934
$
5,540
Long-term debt and leases
5,275
5,580
Other long-term liabilities
6,248
6,219
Shareholders equity
11,824
10,521
Total liabilities and shareholders equity
$
28,281
$
27,860
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.) I GOT THE ANSWERS FROM a-e PLEASE COMPLETE IT FOR ME!!!!!!!!!!!!!!!!!!!
a.
Return on equity (use average balance sheet figures)
10.24t
%
b.
Return on assets (use average balance sheet figures)
5.74
%
c.
Return on capital (use average balance sheet figures)
9.71
%
d.
Days in inventory (use start-of-year balance sheet figures)
