Question

please i need assistance with this question below.. (its all one question in the assignment quiz).

Here are simplified financial statements for Phone Corporation in a recent year: $13,300 4,160 4,087 2,578 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 30%) Net income Dividends $ 2.475 695 $ 1,780 534 $ 1,246 $ 876 BALANCE SHEET (Figures in $ millions) End of Year Assets Cash and marketable securiti 91 Receivables 2,482 Start of Year $ 160 2,530 < Prev 5 of 9 Next >

Answer 1

a]	Return on equity = Net income/(Average equity) = 1246/((10324+9521)/2) =	12.56%
b]	Return on assets = Net income/(Average total assets) = 1246/((27876+27605)/2) =	4.49%
c]	Return on capital = EBIT/(Average capital employed) = 2475/((6520+6198+10324+6475+6169+9521)/2) =	10.95%
	[Capital employed = Long term debt & other obligations+Shareholders' equity]
d]	DIO = 248*365/4160 =	21.76	Days
e]	Inventory turnover = 4160/248 =	16.77
f]	Average collection period = 2530*365/13300 =	69.43	Days
g]	Operating profit margin = 2475/13300 =	18.61%
h]	Long term debt ratio = (6526+6198)/27876 =	45.64%
i]	Total debt ratio = (6526+6198+4834)/27876 =	62.99%
j]	Times interest earned =2475/695 =	3.56
k]	Cash coverage ratio = (2475+2578)/695 =	7.27
l]	Current ratio = 3647/4834 =	0.75
m]	Quick ratio = (91+2482)/4834 =	0.53