a.	Return on equity (Use average equity.)		%
b.	Return on assets (Use after-tax operating income and average assets.)		%
c.	Return on capital (Use after-tax operating income and average capital.)		%
d.	Days in inventory (Use beginning inventory.)		days
e.	Inventory turnover (Use beginning inventory.)
f.	Average collection period (Use beginning receivables.)		days
g.	Operating profit margin (Use after-tax operating income.)		%
h.	Long-term debt ratio (Use end of year values.)
i.	Total debt ratio (Use end of year values.)
j.	Times interest earned
k.	Cash coverage ratio
l.	Current ratio (Use end of year values.)
m.	Quick ratio (Use end of year values.)

1. 10.00 points value Problem 4-7 Financial Ratios (LO3) Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Other expenses Depreciation $ 14,000 4,510 4,212 2,788 and taxes (EBIT) $2 Interest expense 730 Income before tax Taxes (at 30%) $1,760 528 Net income Dividends $1,232 $ 946 BALANCE SHEET