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I need help figuring: G. operating profit margin H. Long-term debt ratio (use end of year balance sheet figure) I. Total debt ratio (use end of your balance sheet figures) J. Times interest earn K. Cash coverage ratio L. Current ratio (use end of your balance sheet figures) M. Quick ratio (use end of your balance sheet figures)

I need help figuring: G. operating profit margin H. Long-term debt ratio (use end of year balance sheet figure) I. Total debt ratio (use end of your balance sheet figures) J. Times interest earn K. Cash coverage ratio L. Current ratio (use end of your balance sheet figures) M. Quick ratio (use end of your balance sheet figures)

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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I need help figuring: G. operating profit margin H. Long-term debt ratio (use end of year balance sheet figure) I. Total debt ratio (use end of your balance sheet figures) J. Times interest earn K. Cash coverage ratio L. Current ratio (use end of your balance sheet figures) M. Quick ratio (use end of your balance sheet figures)
Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $12,800 Cost of goods sold Other expenses 3,860 4,127 2,398 $ 2,415 Depreciation Earnings before interest and taxes (EBIT) Interest expense 665 Income before tax $ 1,750 Taxes (at 30%) 525 Net income $ 1,225 Dividends 836 BALANCE SHEET (Figures in S millions) End of Start of Year Year Assets Cash and marketable securities Receivables 85 154 2,410 218 2,182 Inventories 167 Other current a3sets 847 912 $ 3,694 19,875 Total current a3sets 3,281 19,933 Net property, plant, and equipment 4 176
Transcribed Image Text:Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $12,800 Cost of goods sold Other expenses 3,860 4,127 2,398 $ 2,415 Depreciation Earnings before interest and taxes (EBIT) Interest expense 665 Income before tax $ 1,750 Taxes (at 30%) 525 Net income $ 1,225 Dividends 836 BALANCE SHEET (Figures in S millions) End of Start of Year Year Assets Cash and marketable securities Receivables 85 154 2,410 218 2,182 Inventories 167 Other current a3sets 847 912 $ 3,694 19,875 Total current a3sets 3,281 19,933 Net property, plant, and equipment 4 176
Saved NECT Problems Check my work mode : This shows what is correct or incorrect for the work you have completed so fa BALANCE SHEET (Figures in $ millions) End of Start of Year Year Assets Cash and marketable securities Receivables 85 154 2,182 2,410 Inventories 167 218 Other current 8sets 847 912 $ 3,281 19,933 4,176 $ 27,390 $ 3,694 Total current assets Net property, plant, and equipment Other long-term as3ets 19,875 3,730 Total as3ets $ 27,299 Liabilities and shareholders equity Payables $ 2,524 $ 3,000 1,553 767 1,399 791 4,714 8,014 6,138 8,524 S 27,390 Short-term debt Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity S 5,320 7,549 6,109 8,321 Total liabilities and shareholders' equity S 27,299 Calculate the following firancialratios for Phone rarnoration: (Use 3S5 days in A vear De net round
Transcribed Image Text:Saved NECT Problems Check my work mode : This shows what is correct or incorrect for the work you have completed so fa BALANCE SHEET (Figures in $ millions) End of Start of Year Year Assets Cash and marketable securities Receivables 85 154 2,182 2,410 Inventories 167 218 Other current 8sets 847 912 $ 3,281 19,933 4,176 $ 27,390 $ 3,694 Total current assets Net property, plant, and equipment Other long-term as3ets 19,875 3,730 Total as3ets $ 27,299 Liabilities and shareholders equity Payables $ 2,524 $ 3,000 1,553 767 1,399 791 4,714 8,014 6,138 8,524 S 27,390 Short-term debt Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity S 5,320 7,549 6,109 8,321 Total liabilities and shareholders' equity S 27,299 Calculate the following firancialratios for Phone rarnoration: (Use 3S5 days in A vear De net round
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