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    Break-Even and Ratio Analysis

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    4. Break-Even Analysis

    5. Ratio Analysis
    Required: Calculate the requested ratios using the financials below:
    Income Statement (figures in millions of dollars)
    Net sales 16,725
    Cost of goods sold 5,372
    Other expenses 5,105
    Depreciation 1,823
    Earnings before interest and taxes (EBIT) 4,425
    Interest expense 750
    Income before tax 3,675
    Taxes 1,323
    Net Income 2,352
    Dividends 1,250

    Balance Sheet (figures in millions of dollars)
    Assets End of Year Start of Year
    Cash and marketable securities 214 108
    Receivables 2,507 2,490
    Inventories 312 325
    Other Current Assets 992 500
    Total Current Assets 4,025 3,423
    Net, Property, Plant & Equipment 20,098 21,415
    Other long-term assets 4,341 4,200
    Total Assets 28,464 29,038

    Liabilities & Shareholders' Equity
    Payables 2,709 2,500
    Short-term debt 1,569 1,570
    Other current liabilities 1,016 800
    Total Current Liabilities 5,294 4,870
    Long-term debt and leases 7,018 9,200
    Other long-term liabilities 6,428 7,468
    Shareholder's Equity 9,724 7,500
    Total Liabilities & Shareholders' Equity 28,464 29,038

    A. Operating Profit Margin
    B. Total Debt Ratio
    C. Long-Term Debt Ratio
    D. Return On Assets
    E. Inventory Turnover

    (See attached file for full problem description)

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    4. Break-Even Analysis

    5. Ratio Analysis
    Required: Calculate the requested ratios using the financials below:
    Income Statement (figures in millions of dollars)
    Net sales 16,725
    Cost of goods sold 5,372
    Other expenses 5,105
    Depreciation 1,823
    Earnings before interest and taxes (EBIT) 4,425
    Interest expense 750
    Income before tax 3,675
    Taxes 1,323
    Net Income ...

    Solution Summary

    This provides the steps to calculate the Break-Even and Ratios

    $2.19