Problem 4-7 Financial Ratios (LO3)Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT(Figures in $ millions) Net sales $ 13,600 Cost of goods sold 4,310 Other expenses 4,162 Depreciation 2,668 Earnings before interest and taxes (EBIT) $ 2,460 Interest expense 710 Income before tax $ 1,750 Taxes (at 30%) 525 Net income $ 1,225 Dividends $ 906 BALANCE SHEET(Figures in $ millions)End of Year Start of Year Assets Cash and marketable securities $ 94 $ 163 Receivables 2,632 2,590 Inventories 212 263 Other current assets 892 957 Total current assets $ 3,830 $ 3,973 Net property, plant, and equipment 20,023 19,965 Other long-term assets 4,266 3,820 Total assets $ 28,119 $ 27,758 Liabilities and shareholders’ equity Payables $ 2,614 $ 3,090 Short-term debt 1,444 1,598 Other current liabilities 836 812 Total current liabilities $ 4,894 $ 5,500 Long-term debt and leases 5,773 5,938 Other long-term liabilities 6,228 6,199 Shareholders’ equity 11,224 10,121 Total liabilities and shareholders’ equity $ 28,119 $ 27,758 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.) dayse. Inventory turnover (Use beginning inventory.) f. Average collection period (Use beginning receivables.) daysg. 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.)