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Here are simplified financial statements for Phone Corporation in 2020: 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 INCOME STATEMENT (Figures in $ millions) Dividends Assets Cash and marketable securities Receivables Inventories 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 $ 12,400 3,660 4,137 2,278 $ 2,325 645 $ 1,680 353 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 1. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) $ 1,327 $796 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 start of Year $81 1,982 147 827 $ 3,037 19,893 4,136 $ 27,066 $ 2,484 1,379 771 $ 4,634 9,010 6,098 7,324 $ 27,066 $ 150 2,330 198 892 $ 3,570 19,835 3,690 $ 27,095 $ 2,960 1,533 747 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 decim $ 5,240 8,265 6,069 7,521 $ 27,095 % % % days days %

Here are simplified financial statements for Phone Corporation in 2020: 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 INCOME STATEMENT (Figures in $ millions) Dividends Assets Cash and marketable securities Receivables Inventories 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 $ 12,400 3,660 4,137 2,278 $ 2,325 645 $ 1,680 353 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 1. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures) $ 1,327 $796 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 start of Year $81 1,982 147 827 $ 3,037 19,893 4,136 $ 27,066 $ 2,484 1,379 771 $ 4,634 9,010 6,098 7,324 $ 27,066 $ 150 2,330 198 892 $ 3,570 19,835 3,690 $ 27,095 $ 2,960 1,533 747 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 decim $ 5,240 8,265 6,069 7,521 $ 27,095 % % % days days %

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 32BEB
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Here are simplified financial statements for Phone Corporation in 2020: Net sales Cost of goods sold other expenses INCOME STATEMENT (Figures in $ millions) 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 other current assets BALANCE SHEET (Figures in $ millions) 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 $ 12,400 3,660 4,137 2,278 $ 2,325 645 a. Return on equity (use average balance sheet figures) b. Return on assets (use average balance sheet figures) $ 1,680 353 $ 1,327 $ 796 j. Times interest earned k. Cash coverage ratio 1. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year 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) 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) End of Year 1,982 147 827 $3,037 19,893 4,136 $ 27,066 $ 2,484 1,379 771 $ 4,634 9,010 6,098 7,324 $ 27,066 start of Year $ 3,570 19,835 3,690 $ 27,095 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. $150 2,330 198 892 $ 2,968 1,533 747 $ 5,240 8,265 6,069 7,521 $ 27,095 days days
Transcribed Image Text:Here are simplified financial statements for Phone Corporation in 2020: Net sales Cost of goods sold other expenses INCOME STATEMENT (Figures in $ millions) 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 other current assets BALANCE SHEET (Figures in $ millions) 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 $ 12,400 3,660 4,137 2,278 $ 2,325 645 a. Return on equity (use average balance sheet figures) b. Return on assets (use average balance sheet figures) $ 1,680 353 $ 1,327 $ 796 j. Times interest earned k. Cash coverage ratio 1. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year 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) 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) End of Year 1,982 147 827 $3,037 19,893 4,136 $ 27,066 $ 2,484 1,379 771 $ 4,634 9,010 6,098 7,324 $ 27,066 start of Year $ 3,570 19,835 3,690 $ 27,095 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. $150 2,330 198 892 $ 2,968 1,533 747 $ 5,240 8,265 6,069 7,521 $ 27,095 days days
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