Problem $4-7$ Financial Ratios $($LO$3)$

Here are simplified financial statements for Phone Corporation in $2020$:

INCOME STATEMENT

$($Figures in $ millions$)$

Net sales $ $13,300$

Cost of goods sold $4,160$

Other expenses $4,087$

Depreciation $2,578$

Earnings before interest and taxes $($EBIT$)$ $ $2,475$

Interest expense $695$

Income before tax $ $1,780$

Taxes $($at $21\%)374$

Net income $ $1,406$

Dividends $ $876$

BALANCE SHEET

$($Figures in $ millions$)$

End of Year Start of Year

Assets

Cash and marketable securities $ $91$ $ $160$

Receivables $2,4822,530$

Inventories $197248$

Other current assets $877942$

Total current assets $ $3,647$ $ $3,880$

Net property, plant, and equipment $19,99319,935$

Other long$-$term assets $4,2363,790$

Total assets $ $27,876$ $ $27,605$

Liabilities and shareholders$$ equity

Payables $ $2,584$ $ $3,060$

Short$-$term debt $1,4291,583$

Other current liabilities $821797$

Total current liabilities $ $4,834$ $ $5,440$

Long$-$term debt and leases $6,5206,475$

Other long$-$term liabilities $6,1986,169$

Shareholders$$ equity $10,3249,521$

Total liabilities and shareholders$$ equity $ $27,876$ $ $27,605$

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.