INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Other expenses Depreciation Earnings...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image](https://dsd5zvtm8ll6.cloudfront.net/questions/2024/01/65b7ff9458ad3_33265b7ff94534f4.jpg)
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 Receivables Inventories Assets Cash and marketable securities 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 Other current liabilities Total current liabilities. Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 13,900 4,460 4,197 2,758 $ 2,485 725 $ 1,760 370 $ 1,390 $ 936 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) End of Year Start of Year $ 97 2,782 227 907 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) $ 4,013 20,053 4,296 $ 28,362 $ 2,644 1,459 851 $ 4,954 5,026 6,258 12, 124 $ 28,362 $ 166 2,650 278 972 $ 4,066 19,995 3,850 $ 27,911 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. $ 3,120 1,613 827 $ 5,560 5,401 6,229 10,721 $ 27,911 % % days days % 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 Receivables Inventories Assets Cash and marketable securities 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 Other current liabilities Total current liabilities. Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 13,900 4,460 4,197 2,758 $ 2,485 725 $ 1,760 370 $ 1,390 $ 936 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) End of Year Start of Year $ 97 2,782 227 907 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) $ 4,013 20,053 4,296 $ 28,362 $ 2,644 1,459 851 $ 4,954 5,026 6,258 12, 124 $ 28,362 $ 166 2,650 278 972 $ 4,066 19,995 3,850 $ 27,911 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. $ 3,120 1,613 827 $ 5,560 5,401 6,229 10,721 $ 27,911 % % days days %
Expert Answer:
Answer rating: 100% (QA)
To calculate the financial ratios for Phone Corporation we will use the given information from the balance sheet and income statement Lets calculate e... View the full answer
Related Book For
Financial Management Theory and Practice
ISBN: 978-0176517304
2nd Canadian edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
Posted Date:
Students also viewed these accounting questions
-
1. What are some of the little things that get you down? 2. Would you agree that having some control over your work activities makes them less stressful? 3. How can you tell when youre under a lot of...
-
How many units will you need to sell to break even? (Round the variable cost to the nearest penny and round the # of units UP to the nearest whole number).
-
Here are simplified financial statements for Phone Corporation in a recent year: Calculate the following financial ratios for Phone Corporation: a. Return on equity b. Return on assets c. Return on...
-
Suppose there are 50 companies in a commercial building. Initially there is no automatic fire sprinkler system in the public area of the building. Each company has identical individual demand curve...
-
Flagstaff Systems issues bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds have a $90,000 par value and an annual contract rate of 12%, and they mature...
-
Consider a floating-point format with 8 bits for the biased exponent and 23 bits for the significand. Show the bit pattern for the following numbers in this format: a. -720 b. 0.645
-
On 31 December 1992, the cash book of The Trident showed an overdraft of 5670. From the following particulars, prepare a Bank Reconciliation Statement. (a) Cheques drawn but not cashed before 31...
-
For the data in Problem 5-42, develop an exponential smoothing model with a smoothing constant of 0.3. Using the MSE, compare this with the model in Problem 5-42. In Problem 5-42, The following table...
-
Entries for equity investments: 20%-50% ownership At a total cost of $5,600,000, Herrera Corporation acquired 280,000 shares of Tran Corp. common stock as a long-term investment. Tran Corp. has...
-
See Table E11-1 for data on the ratings of quarterbacks for the 2008 National Football League season (The Sports Network). It is suspected that the rating (y) is related to the average number of...
-
BS Limited, manufactures a single standard product and operates a system of standard costing using a fixed budget. As the companys assistant cost accountant, you are responsible for preparing the...
-
Antismoking advocates cheered in the summer of 1997 when the U.S. tobacco industry agreed to pay out more than U.S. \($368.5\) billion to settle lawsuits brought by forty states seeking compensation...
-
Generate the full set of clauses for the map-coloring graph in Figure 8.1. Resolve these clauses to prove that a three-coloring solution does exist for the graph. data from figure 8.1 A B C D
-
To test \(H_{0}: \mu=80\) versus \(H_{1}: \mu <80\), a simple random sample of size \(n=22\) is obtained from a population that is known to be normally distributed. (a) If \(\bar{x}=76.9\) and...
-
Check that there are at least \(2\left(\begin{array}{c}n \\ 3\end{array} ight)\) different hierarchical models which contain all twoway interaction terms for an \(n\)-way contingency table.
-
A cam with \(30 \mathrm{~mm}\) as minimum diameter is rotating clockwise at a uniform speed of \(1200 \mathrm{rpm}\) and operates a roller follower of \(10 \mathrm{~mm}\) diameter as given below: (i)...
-
Patricia's Event Planning Service (PEPS) has just prepared the unadjusted trial balance, which shows the following balances: Salary expense: Debit $8,000 Service revenues: Credit S3,000 Interest...
-
A spacecraft has left the earth and is moving toward Mars. An observer on the earth finds that, relative to measurements made when the spacecraft was at rest, its a. length is shorter b. KE is less...
-
Using the information from 2-16, create a cash flow statement for 2013. In 2-16 Bristle Brush-Off Corporation: Income Statements for Years Ended December 31 ($000s) 2013 2012 $7,950 5,100 350 750...
-
Greenfield Environmental is expanding rapidly, and it currently needs to retain all of its earnings; hence it does not pay any dividends. However, investors expect Greenfield to begin paying...
-
Harbour Company's pension fund projected that a significant number of its employees would take advantage of a retirement program the company plans to offer in 7 years. Anticipating the need to fund...
-
What is the present value annuity factor of $1.00 at a discount rate of 10% for 15 years? a. 5.0 b. 7.6 c. 10.0 d. 13.9
-
Donald has $100 today. He is aware of TWO investment opportunities: (a) invest $50 and expect to receive $55 in one years time, or (b) invest $100 today and expect to receive $120 in one years time....
-
What quarterly payment is necessary to accumulate $3.75 million over 20 years if the annual interest rate is 4% compounded quarterly? Assume payments are made at the end of each quarter. a. $733.0 b....
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App