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Business
Accounting
INCOME STATEMENT (Figures in 5 millions) Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 21x) Net income Dividends Assets Cash and marketable securities Receivables Inventories Other current assets BALANCE SHEET (Figures in 5 millions) Total current assets Net property, plant, and equipment Other long-teren assets Total assets Liabilities and shareholders' equity Payables Short-tere debt Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 13,200 4,110 4,072 2,548 $ 2,470 690 $1,780 374 $ 1,406 $ 866 L. Total debt ratio (use end-of-year balance sheet figures) J. Times interest earned k. Cash coverage ratio 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) Inventory turnover (use start-of-year balance sheet figures) t. 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) L. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) End of Year Start of Year $ 159 2,510 243 937 5.90 2,432 192 872 $ 3,586 19,983 4,226 $ 27,795 $ 2,574 Answer is complete but not entirely correct. $ 4,814 6,769 6,188 10,024 $ 27,795 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 declm $ 3,849 19,925 3,780 $ 27,554 $ 3,050 1,578 792 $ 5,420 6,654 6,159 9,321 $ 27,554 11.96% 4.18% 1.05 % 21.58 days 16.91 69.41 days 18.71% 0.47 0.64 3.58 7.27 0.74 0.52

INCOME STATEMENT (Figures in 5 millions) Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 21x) Net income Dividends Assets Cash and marketable securities Receivables Inventories Other current assets BALANCE SHEET (Figures in 5 millions) Total current assets Net property, plant, and equipment Other long-teren assets Total assets Liabilities and shareholders' equity Payables Short-tere debt Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 13,200 4,110 4,072 2,548 $ 2,470 690 $1,780 374 $ 1,406 $ 866 L. Total debt ratio (use end-of-year balance sheet figures) J. Times interest earned k. Cash coverage ratio 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) Inventory turnover (use start-of-year balance sheet figures) t. 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) L. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) End of Year Start of Year $ 159 2,510 243 937 5.90 2,432 192 872 $ 3,586 19,983 4,226 $ 27,795 $ 2,574 Answer is complete but not entirely correct. $ 4,814 6,769 6,188 10,024 $ 27,795 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 declm $ 3,849 19,925 3,780 $ 27,554 $ 3,050 1,578 792 $ 5,420 6,654 6,159 9,321 $ 27,554 11.96% 4.18% 1.05 % 21.58 days 16.91 69.41 days 18.71% 0.47 0.64 3.58 7.27 0.74 0.52

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Other current assets Total current assets Net property, plant, and equipment Other long-term assets BALANCE SHEET (Figures in $ millions) 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 $ 13,200 4,110 4,872 2,548 $ 2,470 698 $ 1,780 374 $ 1,486 $ 866 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) End of Year Start of Year $ 98 $ 159 2,432 2,510 192 243 872 937 $ 3,586 19,983 4,226 $ 27,795 d. Days in inventory (use start-of-year balance sheet figures) e. Inventory turnover (use start-of-year balance sheet figures) 1. 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) I. 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) $ 2,574 1,424 816 $ 4,814 6,769 6,188 10,024 $ 27,795 Answer is complete but not entirely correct. 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. $ 3,849 19,925 3,780 $ 27,554 11.96 % $ 5,420 6,654 6,159 9,321 $ 27,554 4.18% 0.47 x 0.64 3.58 7.27 $ 3,050 1,578 792 0.74 0.52 → 1.05 % 21.58 days 16.91 69.41 18.71 % days
Transcribed Image Text: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 Other current assets Total current assets Net property, plant, and equipment Other long-term assets BALANCE SHEET (Figures in $ millions) 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 $ 13,200 4,110 4,872 2,548 $ 2,470 698 $ 1,780 374 $ 1,486 $ 866 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) End of Year Start of Year $ 98 $ 159 2,432 2,510 192 243 872 937 $ 3,586 19,983 4,226 $ 27,795 d. Days in inventory (use start-of-year balance sheet figures) e. Inventory turnover (use start-of-year balance sheet figures) 1. 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) I. 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) $ 2,574 1,424 816 $ 4,814 6,769 6,188 10,024 $ 27,795 Answer is complete but not entirely correct. 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. $ 3,849 19,925 3,780 $ 27,554 11.96 % $ 5,420 6,654 6,159 9,321 $ 27,554 4.18% 0.47 x 0.64 3.58 7.27 $ 3,050 1,578 792 0.74 0.52 → 1.05 % 21.58 days 16.91 69.41 18.71 % days
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