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Problem 4-7 Financial Ratios (L03) Here are simplified financial statements for Phone Corporation in a recent year. INCOME STATEMENT (Figures in $ millions) Net sales $ 12,300 Cost of goods sold 3,610 Other expenses 4,022 Depreciation 2,248 Earnings before interest and taxes (EBIT) Interest expense $ 2,420 640 Income before tax Taxes (at 35%) $ 1.780 623 Net income Dividends $ 1,157 $ 756 Start of Year BALANCE SHEET (Figures in $ millions) End of Year Assets Cash and marketable securities $ 80 Receivables 1,932 Inventories 142 Other current assets 822 $ 149 2,310 193 887 $ 2,976 Total current assets Net property, plant, and equipment Other long-term assets 19,883 $ 3,539 19,825 3,680 4,126 Total assets $26,985 $27,044 Liabilities and shareholders' equity Payables Short-term debt Other current liabilities $ 2,474 1,374 766 $ 2,950 1,528 742 Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity $ 4,614 9,259 6,088 7,024 $ 5,220 8,444 6,059 7,321 Total liabilities and shareholders' equity $26,985 $27,044 Calculate the following financial ratios for Phone Corporation: (Use 365 days in a year. Do not round Intermediate calculations. Round your percentage answers "Return on equity" "Return on assets", Return on capital" and "Operating profit margin" to 2 decimal places and the rest to 2 decimal places.) Return on equity (Use ending equity) Return on assets (Use after-tax operating income and ending assets.) Days in inventory (Use ending inventory.) Inventory turnover (Use ending inventory.) Average collection period (Use ending receivables.) Operating profit margin (Use after-tax operating income.) Recievable Turnover Asset Turnover % 5.82 % days days %