Here are simplified financial statements for Phone Corporation in 2020: INCOME STATEMENT (Figures in $ millions)...
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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) 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 $ 13,300 4,160 4,087 2,578 Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities $ 2,475 695 $ 1,780 374 $ 1,406 $ 876 End of Year Start of Year $ 91 $160 2,530 2,482 197 877 $ 3,647 19,993 4,236 $ 27,876 $ 2,584 1,429 821 $ 4,834 6,520 6, 198 10,324 $ 27,876 Shareholders' equity Total liabilities and shareholders' equity Calculate the following financial ratios for Phone Corporation: 248 942 $ 3,880 19,935 3,790 $ 27,605 $ 3,060 1,583 797 $5,440 6,475 6,169 9,521 $ 27,605 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. Answer is complete but not entirely correct. 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) i. Total debt ratio (use end-of-year balance sheet figures) j. Times interest earned k. Cash coverage ratio I. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) 14.17 % 7.05 % 10.95 X % 21.76 16.77 69.43 14.70 0.46 X 0.63 3.56 7.27 0.75 0.71 X days days % 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) 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 $ 13,300 4,160 4,087 2,578 Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities $ 2,475 695 $ 1,780 374 $ 1,406 $ 876 End of Year Start of Year $ 91 $160 2,530 2,482 197 877 $ 3,647 19,993 4,236 $ 27,876 $ 2,584 1,429 821 $ 4,834 6,520 6, 198 10,324 $ 27,876 Shareholders' equity Total liabilities and shareholders' equity Calculate the following financial ratios for Phone Corporation: 248 942 $ 3,880 19,935 3,790 $ 27,605 $ 3,060 1,583 797 $5,440 6,475 6,169 9,521 $ 27,605 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. Answer is complete but not entirely correct. 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) i. Total debt ratio (use end-of-year balance sheet figures) j. Times interest earned k. Cash coverage ratio I. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) 14.17 % 7.05 % 10.95 X % 21.76 16.77 69.43 14.70 0.46 X 0.63 3.56 7.27 0.75 0.71 X days days %
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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