Homework Help is Here – Start Your Trial Now!
Business
Finance
g. operating profit margin h.  long -term debt ratio i. total debt ratio

g. operating profit margin h.  long -term debt ratio i. total debt ratio

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

g. operating profit margin

h.  long -term debt ratio

i. total debt ratio

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 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Income Statement 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.
Similar questions
  • SEE MORE QUESTIONS
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