Here are simplified financial statements for Phone Corporation in 2020: \table[[, INCOME STATEMENT], [(Figures in $ millions),]] \table[[\table[[BALANCE SHEET], [(Figures in $ millions)], [End of Year Start of Year]]], [Assets,,], [Cash and marketable securities, $ 89, $ 158], [Receivables, 2, 382, 2, 490], [Inventories, 187,238], [Other current assets,867, 932], [Total current assets,$ 3,525, $ 3,818], [Net property, plant, and equipment, 19, 973, 19, 915], [Other long-term assets, 4, 216, 3, 770], [ Total assets,$ 27,714, $ 27, 503], [Liabilities and shareholders' equity..], [Payables, $ 2,564, $ 3,040], [Short-term debt, 1,419, 1, 573], [Other current liabilities,811, 787], [Total current liabilities,$ 4, 794, $ 5, 400], [Long-term debt and leases, 7,018,6,833], [Other long-term liabilities,6, 178, 6, 149], [Shareholders' equity, 9, 724, 9, 121], [Total liabilities and shareholders' equity,$ 27, 714, $ 27, 503]] 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. \table[[a. Return on equity (use average balance sheet figures), 15.77,% 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) g. Operating profit margin h. Long-term debt ratio (use end-of-year balance sheet figures) 1. Total debt ratio (use end-of-year balance sheet figures) j. Times interest earned k. Cash coverage ratio 1. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) 15.77% % 3.75 0.74 % days days %
Here are simplified financial statements for Phone Corporation in 2020: \table[[, INCOME STATEMENT], [(Figures in $ millions),]] \table[[\table[[BALANCE SHEET], [(Figures in $ millions)], [End of Year Start of Year]]], [Assets,,], [Cash and marketable securities, $ 89, $ 158], [Receivables, 2, 382, 2, 490], [Inventories, 187,238], [Other current assets,867, 932], [Total current assets,$ 3,525, $ 3,818], [Net property, plant, and equipment, 19, 973, 19, 915], [Other long-term assets, 4, 216, 3, 770], [ Total assets,$ 27,714, $ 27, 503], [Liabilities and shareholders' equity..], [Payables, $ 2,564, $ 3,040], [Short-term debt, 1,419, 1, 573], [Other current liabilities,811, 787], [Total current liabilities,$ 4, 794, $ 5, 400], [Long-term debt and leases, 7,018,6,833], [Other long-term liabilities,6, 178, 6, 149], [Shareholders' equity, 9, 724, 9, 121], [Total liabilities and shareholders' equity,$ 27, 714, $ 27, 503]] 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. \table[[a. Return on equity (use average balance sheet figures), 15.77,% 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) g. Operating profit margin h. Long-term debt ratio (use end-of-year balance sheet figures) 1. Total debt ratio (use end-of-year balance sheet figures) j. Times interest earned k. Cash coverage ratio 1. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) 15.77% % 3.75 0.74 % days days %
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...
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![Here are simplified financial statements for Phone Corporation in 2020:
\table[[, INCOME STATEMENT], [(Figures in $ millions),]]
\table[[\table[[BALANCE SHEET], [(Figures in $ millions)], [End of Year Start of Year]]], [Assets,,], [Cash and marketable
securities, $ 89, $ 158], [Receivables, 2, 382, 2, 490], [Inventories, 187,238], [Other current assets,867, 932], [Total current
assets,$ 3,525, $ 3,818], [Net property, plant, and equipment, 19, 973, 19, 915], [Other long-term assets, 4, 216, 3, 770], [
Total assets,$ 27,714, $ 27, 503], [Liabilities and shareholders' equity..], [Payables, $ 2,564, $ 3,040], [Short-term debt,
1,419, 1, 573], [Other current liabilities,811, 787], [Total current liabilities,$ 4, 794, $ 5, 400], [Long-term debt and leases,
7,018,6,833], [Other long-term liabilities,6, 178, 6, 149], [Shareholders' equity, 9, 724, 9, 121], [Total liabilities and
shareholders' equity,$ 27, 714, $ 27, 503]]
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.
\table[[a. Return on equity (use average balance sheet figures), 15.77,%
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)
g. Operating profit margin
h. Long-term debt ratio (use end-of-year balance sheet figures)
1. Total debt ratio (use end-of-year balance sheet figures)
j. Times interest earned
k. Cash coverage ratio
1. Current ratio (use end-of-year balance sheet figures)
m. Quick ratio (use end-of-year balance sheet figures)
15.77%
%
3.75
0.74
%
days
days
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F532c6d75-6ef2-432f-b3e6-a7d19cef44af%2F75b5ff01-389a-4e4b-8927-9e944aedf312%2F0hq27_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Here are simplified financial statements for Phone Corporation in 2020:
\table[[, INCOME STATEMENT], [(Figures in $ millions),]]
\table[[\table[[BALANCE SHEET], [(Figures in $ millions)], [End of Year Start of Year]]], [Assets,,], [Cash and marketable
securities, $ 89, $ 158], [Receivables, 2, 382, 2, 490], [Inventories, 187,238], [Other current assets,867, 932], [Total current
assets,$ 3,525, $ 3,818], [Net property, plant, and equipment, 19, 973, 19, 915], [Other long-term assets, 4, 216, 3, 770], [
Total assets,$ 27,714, $ 27, 503], [Liabilities and shareholders' equity..], [Payables, $ 2,564, $ 3,040], [Short-term debt,
1,419, 1, 573], [Other current liabilities,811, 787], [Total current liabilities,$ 4, 794, $ 5, 400], [Long-term debt and leases,
7,018,6,833], [Other long-term liabilities,6, 178, 6, 149], [Shareholders' equity, 9, 724, 9, 121], [Total liabilities and
shareholders' equity,$ 27, 714, $ 27, 503]]
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.
\table[[a. Return on equity (use average balance sheet figures), 15.77,%
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)
g. Operating profit margin
h. Long-term debt ratio (use end-of-year balance sheet figures)
1. Total debt ratio (use end-of-year balance sheet figures)
j. Times interest earned
k. Cash coverage ratio
1. Current ratio (use end-of-year balance sheet figures)
m. Quick ratio (use end-of-year balance sheet figures)
15.77%
%
3.75
0.74
%
days
days
%
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