g. operating profit marginh. long -term debt ratioi. total debt ratio Financial Ratios. Here are simplified financial statements for Phone Corporation in a recent7.year:INCOME STATEMENT(Figures in $ millions)13,1934,060Net salesCost of goods soldOther expensesDepreciationEarnings before interest and taxes (EBIT)Interest expense4,0492,5182,566685Income before tax1,881Taxes (at 35%)658Net income1,223Dividends856BALANCE SHEET(Figures in $ millions)End of YearStart of YearAssetsCash and marketable securities$ 89%24158Receivables2,3821872,490Inventories ne238Other current assets867932$ 3,525$ 3,81819,915Total current assetsNet property, plant, and equipmentOther long-term assets19,9734,216$27,7143,770$27,503Total assetsLiabilities and shareholders' equityPayablesShort-term debt$ 2,564$ 3,0401,5731,419Other current liabilities811787Total current liabilities$ 4,794$ 5,400Long-term debt and leasesOther long-term liabilitiesShareholders' equityTotal liabilities and shareholders' equity7,0186,8336,1499,121$27,5036,1789,724$27,714Calculate the following financial ratios for Phone Corporation: (LO4-3)

Income statement is a statement which records the revenue and expenses of an undertaking for a…

Answered: g. operating profit margin h. long…

Business

Finance

g. operating profit margin h. long -term debt ratio i. total debt ratio

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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