Homework Help is Here – Start Your Trial Now!
Business
Finance
eturn on equity b) return on assests c) return on capital

eturn on equity b) return on assests c) return on capital

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question

a) return on equity

b) return on assests

c) return on capital

Financial Ratios. Here are simplified financial statements for Phone Corporation in a recent 7. year: INCOME STATEMENT (Figures in $ millions) 13,193 4,060 Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense 4,049 2,518 2,566 685 Income before tax 1,881 Taxes (at 35%) 658 Net income 1,223 Dividends 856 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities $ 89 %24 158 Receivables 2,382 187 2,490 Inventories ne 238 Other current assets 867 932 $ 3,525 $ 3,818 19,915 Total current assets Net property, plant, and equipment Other long-term assets 19,973 4,216 $27,714 3,770 $27,503 Total assets Liabilities and shareholders' equity Payables Short-term debt $ 2,564 $ 3,040 1,573 1,419 Other current liabilities 811 787 Total current liabilities $ 4,794 $ 5,400 Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity 7,018 6,833 6,149 9,121 $27,503 6,178 9,724 $27,714 Calculate the following financial ratios for Phone Corporation: (LO4-3)
Transcribed Image Text:Financial Ratios. Here are simplified financial statements for Phone Corporation in a recent 7. year: INCOME STATEMENT (Figures in $ millions) 13,193 4,060 Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense 4,049 2,518 2,566 685 Income before tax 1,881 Taxes (at 35%) 658 Net income 1,223 Dividends 856 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities $ 89 %24 158 Receivables 2,382 187 2,490 Inventories ne 238 Other current assets 867 932 $ 3,525 $ 3,818 19,915 Total current assets Net property, plant, and equipment Other long-term assets 19,973 4,216 $27,714 3,770 $27,503 Total assets Liabilities and shareholders' equity Payables Short-term debt $ 2,564 $ 3,040 1,573 1,419 Other current liabilities 811 787 Total current liabilities $ 4,794 $ 5,400 Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity 7,018 6,833 6,149 9,121 $27,503 6,178 9,724 $27,714 Calculate the following financial ratios for Phone Corporation: (LO4-3)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS