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Here are simplified financial statements for Phone Corporation in 2020: 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 Assets Cash and marketable securities Receivables Inventories BALANCE SHEET (Figures in $ millions) $ 12, 200 3,560 4,037 2,218 $ 2,385 635 $1,750 368 $ 1,382 $ 746 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 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 f. Average collection period (use start-of-year balance sheet figures) $ 79 1,882 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 137 817 X Answer is not complete. $ 2,915 19,873 4,116 $ 26,904 $ 2,464 1,369 761 $ 4,594 9,508 6,078 6,724 $ 26,904 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. Start of Year $148 2,290 $ 3,508 19,815 3,670 $ 26,993 188 882 $ 2,940 1,523 737 $5,200 8,623 6,049 7,121 $ 26,993 19.97 % 5.13X % 20.58X % days days %

Here are simplified financial statements for Phone Corporation in 2020: 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 Assets Cash and marketable securities Receivables Inventories BALANCE SHEET (Figures in $ millions) $ 12, 200 3,560 4,037 2,218 $ 2,385 635 $1,750 368 $ 1,382 $ 746 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 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 f. Average collection period (use start-of-year balance sheet figures) $ 79 1,882 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 137 817 X Answer is not complete. $ 2,915 19,873 4,116 $ 26,904 $ 2,464 1,369 761 $ 4,594 9,508 6,078 6,724 $ 26,904 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. Start of Year $148 2,290 $ 3,508 19,815 3,670 $ 26,993 188 882 $ 2,940 1,523 737 $5,200 8,623 6,049 7,121 $ 26,993 19.97 % 5.13X % 20.58X % days days %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Here are simplified financial statements for Phone Corporation in 2020: 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 Assets Cash and marketable securities Receivables Inventories BALANCE SHEET (Figures in $ millions) $ 12, 200 3,560 4,037 2,218 $ 2,385 Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity 635 $ 1,750 368 $ 1,382 $ 746 Other current assets Total current assets Net property, plant, and equipment Other long-term assets Total assets Total liabilities and shareholders' equity Liabilities and shareholders' equity Payables Short-term debt 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) f. Average collection period (use start-of-year balance sheet figures) End of Year $ 79 1,882 137 817 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 $ 2,915 19,873 4,116 $ 26,904 X Answer is not complete. $ 2,464 1,369 761 $ 4,594 9,508 6,078 6,724 $ 26,904 Start of Year $ 148 2,290 188 882 $ 3,508 19,815 3,670 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. $ 26,993 $ 2,940 1,523 737 $ 5,200 8,623 6,049 7,121 $ 26,993 19.97✔ % 5.13X % 20.58X % days days %
Transcribed Image Text:Here are simplified financial statements for Phone Corporation in 2020: 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 Assets Cash and marketable securities Receivables Inventories BALANCE SHEET (Figures in $ millions) $ 12, 200 3,560 4,037 2,218 $ 2,385 Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity 635 $ 1,750 368 $ 1,382 $ 746 Other current assets Total current assets Net property, plant, and equipment Other long-term assets Total assets Total liabilities and shareholders' equity Liabilities and shareholders' equity Payables Short-term debt 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) f. Average collection period (use start-of-year balance sheet figures) End of Year $ 79 1,882 137 817 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 $ 2,915 19,873 4,116 $ 26,904 X Answer is not complete. $ 2,464 1,369 761 $ 4,594 9,508 6,078 6,724 $ 26,904 Start of Year $ 148 2,290 188 882 $ 3,508 19,815 3,670 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. $ 26,993 $ 2,940 1,523 737 $ 5,200 8,623 6,049 7,121 $ 26,993 19.97✔ % 5.13X % 20.58X % days days %
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