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 3,860 Other expenses 4,127 Depreciation 2,398 Earnings before interest and taxes (EBIT) $ 2,415 Interest expense 665 Income before tax $ 1,750 Taxes (at 30%) 525 Net income $ 1,225 Dividends $ 836 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities $ 85 $ 154 Receivables 2,182 2,410 Inventories 167 218 Other current assets 847 912 Total current assets $ 3,281 $ 3,694 Net property, plant, and equipment 19,933 19,875 Other long-term assets 4,176 3,730 Total assets $ 27,390 $ 27,299 Liabilities and shareholders’ equity Payables $ 2,524 $ 3,000 Short-term debt 1,399 1,553 Other current liabilities 791 767 Total current liabilities $ 4,714 $ 5,320 Long-term debt and leases 8,014 7,549 Other long-term liabilities 6,138 6,109 Shareholders’ equity 8,524 8,321 Total liabilities and shareholders’ equity $ 27,390 $ 27,299
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.) a. Return on equity (Use average equity.) % b. Return on assets (Use after-tax operating income and average assets.) % c. Return on capital (Use after-tax operating income and average capital.) % d. Days in inventory (Use beginning inventory.) days e. Inventory turnover (Use beginning inventory.) f. Average collection period (Use beginning receivables.) days g. Operating profit margin (Use after-tax operating income.) % h. Long-term debt ratio (Use end of year values.) i. Total debt ratio (Use end of year values.) j. Times interest earned k. Cash coverage ratio l. Current ratio (Use end of year values.) m. Quick ratio (Use end of year values.)