Question: table [ [ a . Return on equity ( use average balance sheet figures ) , 1 3 . 5 9 , % ]

\table[[a. Return on equity (use average balance sheet figures),13.59,%],[b. Return on assets (use average balance sheet figures),,%],[c. Return on capital (use average balance sheet figures),,days],[d. Days in inventory (use start-of-year balance sheet figures),,],[e. Inventory turnover (use start-of-year balance sheet figures),,days],[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),7.63,],[j. Times interest earned,0.79,],[k. Cash coverage ratio,,],[I. Current ratio (use end-of-year balance sheet figures),,],[m. Quick ratio (use end-of-year balance sheet figures),,]] Here are simplified financial statements for Phone Corporation in 2020:
INCOME STATEMENT
(Figures in $ millions)
Net sales $ 13,700
Cost of goods sold 4,360
Other expenses 4,047
Depreciation 2,698
Earnings before interest and taxes (EBIT) $ 2,595
Interest expense 715
Income before tax $ 1,880
Taxes (at 21%)395
Net income $ 1,485
Dividends $ 916
BALANCE SHEET
(Figures in $ millions)
End of Year Start of Year
Assets
Cash and marketable securities $ 95 $ 164
Receivables 2,6822,610
Inventories 217268
Other current assets 897962
Total current assets $ 3,891 $ 4,004
Net property, plant, and equipment 20,03319,975
Other long-term assets 4,2763,830
Total assets $ 28,200 $ 27,809
Liabilities and shareholders equity
Payables $ 2,624 $ 3,100
Short-term debt 1,4491,603
Other current liabilities 841817
Total current liabilities $ 4,914 $ 5,520
Long-term debt and leases 5,5245,759
Other long-term liabilities 6,2386,209
Shareholders equity 11,52410,321
Total liabilities and shareholders equity $ 28,200 $ 27,809
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.
 \table[[a. Return on equity (use average balance sheet figures),13.59,%],[b. Return on

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!