(Figures in $ millions) Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 21%) Net income Dividends Assets Cash and marketable securities Receivables Inventories BALANCE SHEET (Figures in $ millions) $ 12, 200 3,560 4,037 2,218 $ 2,385 635 $1,750 368 $ 1,382 $ 746 Other current assets Total current assets Net property, plant, and equipment Other long-term assets Total assets Liabilities and shareholders' equity Payables Short-term debt Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity a. Return on equity (use average balance sheet figures) b. Return on assets (use average balance sheet figures) c. Return on capital (use average balance sheet figures) d. Days in inventory (use start-of-year balance sheet figures) e. Inventory turnover (use start-of-year balance sheet figures) End of Year f. Average collection period (use start-of-year balance sheet figures) $79 1,882 g. Operating profit margin h. Long-term debt ratio (use end-of-year balance sheet figures) i. Total debt ratio (use end-of-year balance sheet figures) j. Times interest earned 137 817 $ 2,915 19,873 4,116 Answer is not complete. $ 26,904 $ 2,464 1,369 761 $4,594 9,508 6,078 6,724 $ 26,904 Calculate the following financial ratios for Phone Corporation: Note: Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places. Start of Year $ 148 2,290 188 882 $ 3,508 19,815 3,670 $ 26,993 $ 2,940 1,523 737 $5,200 8,623 6,049 7,121 $ 26,993 19.97 % 5.13X% 20.58X% days days %
(Figures in $ millions) Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 21%) Net income Dividends Assets Cash and marketable securities Receivables Inventories BALANCE SHEET (Figures in $ millions) $ 12, 200 3,560 4,037 2,218 $ 2,385 635 $1,750 368 $ 1,382 $ 746 Other current assets Total current assets Net property, plant, and equipment Other long-term assets Total assets Liabilities and shareholders' equity Payables Short-term debt Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity a. Return on equity (use average balance sheet figures) b. Return on assets (use average balance sheet figures) c. Return on capital (use average balance sheet figures) d. Days in inventory (use start-of-year balance sheet figures) e. Inventory turnover (use start-of-year balance sheet figures) End of Year f. Average collection period (use start-of-year balance sheet figures) $79 1,882 g. Operating profit margin h. Long-term debt ratio (use end-of-year balance sheet figures) i. Total debt ratio (use end-of-year balance sheet figures) j. Times interest earned 137 817 $ 2,915 19,873 4,116 Answer is not complete. $ 26,904 $ 2,464 1,369 761 $4,594 9,508 6,078 6,724 $ 26,904 Calculate the following financial ratios for Phone Corporation: Note: Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places. Start of Year $ 148 2,290 188 882 $ 3,508 19,815 3,670 $ 26,993 $ 2,940 1,523 737 $5,200 8,623 6,049 7,121 $ 26,993 19.97 % 5.13X% 20.58X% days days %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1
Transcribed Image Text:Here are simplified financial statements for Phone Corporation in 2020:
INCOME STATEMENT
(Figures in $ millions)
Net sales
Cost of goods sold
Other expenses
Depreciation
Earnings before interest and
taxes (EBIT)
Interest expense
Income before tax
Taxes (at 21%)
Net income
Dividends
Assets
Cash and marketable securities
Receivables
Inventories
BALANCE SHEET
(Figures in $ millions)
$
12, 200
3,560
4,037
2,218
$ 2,385
Other current liabilities
Total current liabilities
Long-term debt and leases
Other long-term liabilities
Shareholders' equity
635
$ 1,750
368
$ 1,382
$ 746
Other current assets
Total current assets
Net property, plant, and equipment
Other long-term assets
Total assets
Total liabilities and
shareholders' equity
Liabilities and shareholders' equity
Payables
Short-term debt
a. Return on equity (use average balance sheet
figures)
b. Return on assets (use average balance sheet
figures)
c. Return on capital (use average balance sheet
figures)
d. Days in inventory (use start-of-year balance
sheet figures)
e. Inventory turnover (use start-of-year balance
sheet figures)
f. Average collection period (use start-of-year
balance sheet figures)
End of
Year
$ 79
1,882
137
817
g. Operating profit margin
h. Long-term debt ratio (use end-of-year balance
sheet figures)
i. Total debt ratio (use end-of-year balance sheet
figures)
j. Times interest earned
$ 2,915
19,873
4,116
$
26,904
X Answer is not complete.
$ 2,464
1,369
761
$ 4,594
9,508
6,078
6,724
$
26,904
Start of
Year
$ 148
2,290
188
882
$ 3,508
19,815
3,670
Calculate the following financial ratios for Phone Corporation:
Note: Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal
places.
$ 26,993
$ 2,940
1,523
737
$ 5,200
8,623
6,049
7,121
$ 26,993
19.97✔ %
5.13X %
20.58X %
days
days
%
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