I need help figuring: G. operating profit margin H. Long-term debt ratio (use end of year balance sheet figure) I. Total debt ratio (use end of your balance sheet figures) J. Times interest earn K. Cash coverage ratio L. Current ratio (use end of your balance sheet figures) M. Quick ratio (use end of your balance sheet figures)
I need help figuring: G. operating profit margin H. Long-term debt ratio (use end of year balance sheet figure) I. Total debt ratio (use end of your balance sheet figures) J. Times interest earn K. Cash coverage ratio L. Current ratio (use end of your balance sheet figures) M. Quick ratio (use end of your balance sheet figures)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
I need help figuring:
G. operating profit margin
H. Long-term debt ratio (use end of year balance sheet figure)
I. Total debt ratio (use end of your balance sheet figures)
J. Times interest earn
K. Cash coverage ratio
L. Current ratio (use end of your balance sheet figures)
M. Quick ratio (use end of your balance sheet figures)

Transcribed Image Text:Here are simplified financial statements for Phone Corporation in a recent year:
INCOME STATEMENT
(Figures in $ millions)
Net sales
$12,800
Cost of goods sold
Other expenses
3,860
4,127
2,398
$ 2,415
Depreciation
Earnings before interest and taxes
(EBIT)
Interest expense
665
Income before tax
$ 1,750
Taxes (at 30%)
525
Net income
$ 1,225
Dividends
836
BALANCE SHEET
(Figures in S millions)
End of
Start of
Year
Year
Assets
Cash and marketable securities
Receivables
85
154
2,410
218
2,182
Inventories
167
Other current a3sets
847
912
$ 3,694
19,875
Total current a3sets
3,281
19,933
Net property, plant, and equipment
4 176

Transcribed Image Text:Saved
NECT Problems
Check my work mode : This shows what is correct or incorrect for the work you have completed so fa
BALANCE SHEET
(Figures in $ millions)
End of
Start of
Year
Year
Assets
Cash and marketable securities
Receivables
85
154
2,182
2,410
Inventories
167
218
Other current
8sets
847
912
$ 3,281
19,933
4,176
$ 27,390
$ 3,694
Total current assets
Net property, plant, and equipment
Other long-term as3ets
19,875
3,730
Total as3ets
$ 27,299
Liabilities and shareholders equity
Payables
$ 2,524
$ 3,000
1,553
767
1,399
791
4,714
8,014
6,138
8,524
S 27,390
Short-term debt
Other current liabilities
Total current liabilities
Long-term debt and leases
Other long-term liabilities
Shareholders' equity
S 5,320
7,549
6,109
8,321
Total liabilities and shareholders' equity
S 27,299
Calculate the following firancialratios for Phone rarnoration: (Use 3S5 days in A vear De net round
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