The financial statements of Smith Corporation follow: (Click the icon to view the assets section of...

     

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The financial statements of Smith Corporation follow: (Click the icon to view the assets section of the balance sheet.) (Click the icon to view the liabilities and stockholders' equity sections of the balance sheet.) (Click the icon to view the income statement.) Calculate these profitability measures for 2018. Show each computation. a. Rate of return on sales. b. Asset turnover ratio. c. Rate of return on total assets. d. Leverage (equity multiplier) ratio. e. Rate of return on common stockholders' equity. f. Is Smith's profitability strong, medium, or weak? a. Compute the rate of return on sales for 2018. (Enter currency amounts in millions as given in the question. Ignore interest expense in your analysis and enter "0" for any zero balances. Round your answer to the nearest tenth of a percent, X.X%.) Interest expense )/ Net income = = Rate of return on sales % (Dollar amounts in millions) Assets Current assets: Cash and cash equivalents Short-term investments Receivables, net Inventories Balance Sheets (Adapted) December 31, 2018 and 2017 Prepaid expenses and other assets Total current assets Property, plant, and equipment, net Intangible assets Other assets Total assets $ 2018 1,250 $ 12 180 86 240 1,768 6,070 1,060 850 9,748 $ 2017 Increase (Decrease) Amount Percentage 960 $ 50 300 40 354 1,704 3,360 838 750 6,652 $ 290 (38) (76.0) (120) (40.0) 115.0 (32.2) 3.8 80.7 26.5 13.3 46 (114) 64 2,710 222 100 30.2% 3,096 46.5 % les and Stockhold Current liabilities: Accounts payable Income tax payable Short-term debt Other Total current liabilities Long-term debt Other liabilities Total liabilities Stockholders' equity: Common stock Retained earnings Equity Accumulated other comprehensive (loss) Total stockholders' equity Total liabilities and stockholders' equity GA $ 920 $ 44 150 55 1,169 6,111 1,150 8,430 2 1,526 (210) 1,318 9,748 $ 900 $ 64 90 60 1,114 3,096 1,050 5,260 2 1,610 (220) 1,392 6,652 $ 20 (20) 60 (5) 55 3,015 100 3,170 (84) 10 (74) 3,096 2.2 % (31.3) 66.7 (8.3) 4.9 97.4 9.5 60.3 (5.2) 4.5 (5.3) 46.5 % Smith Corporation Statements of Income (Adapted) Year Ended December 31, 2018 and 2017 2018 (Dollar amounts in millions) Net revenues Cost of goods sold Gross profit General and administrative expenses Income from operations Interest expense, net Income before income taxes Provision for income taxes Net income Print Done $ 9,840 $ 4,095 5,745 3,500 2,245 449 1,796 1,304 492 $ 2017 9,300 5,200 4,100 3,700 400 160 240 210 30 S12-9 (similar to) The financial statements of Smith Corporation follow: (Click the icon to view the assets section of the balance sheet.) ( (Click the icon to view the liabilities and stockholders' equity sections of the balance sheet.) (Click the icon to view the income statement.) a. Compute the rate of return on sales for 2018. (Enter currency amounts in millions as given in the question. Ignore interest expense in your analysis and enter "0" for any zero balances. Round your answer to the nearest tenth of a percent, X.X%.) Interest expense )/ Net income )/ LO Calculate these profitability measures for 2018. Show each computation. a. Rate of return on sales. b. Asset turnover ratio. c. Rate of return on total assets. d. Leverage (equity multiplier) ratio. e. Rate of return on common stockholders' equity. f. Is Smith's profitability strong, medium, or weak? parts remaining Choose from any list or enter any number in the input fields and then click Check Answer. = Clear All Question Help ▼ = Rate of return on sales % Check Answer ? The financial statements of Smith Corporation follow: (Click the icon to view the assets section of the balance sheet.) (Click the icon to view the liabilities and stockholders' equity sections of the balance sheet.) (Click the icon to view the income statement.) Calculate these profitability measures for 2018. Show each computation. a. Rate of return on sales. b. Asset turnover ratio. c. Rate of return on total assets. d. Leverage (equity multiplier) ratio. e. Rate of return on common stockholders' equity. f. Is Smith's profitability strong, medium, or weak? a. Compute the rate of return on sales for 2018. (Enter currency amounts in millions as given in the question. Ignore interest expense in your analysis and enter "0" for any zero balances. Round your answer to the nearest tenth of a percent, X.X%.) Interest expense )/ Net income = = Rate of return on sales % (Dollar amounts in millions) Assets Current assets: Cash and cash equivalents Short-term investments Receivables, net Inventories Balance Sheets (Adapted) December 31, 2018 and 2017 Prepaid expenses and other assets Total current assets Property, plant, and equipment, net Intangible assets Other assets Total assets $ 2018 1,250 $ 12 180 86 240 1,768 6,070 1,060 850 9,748 $ 2017 Increase (Decrease) Amount Percentage 960 $ 50 300 40 354 1,704 3,360 838 750 6,652 $ 290 (38) (76.0) (120) (40.0) 115.0 (32.2) 3.8 80.7 26.5 13.3 46 (114) 64 2,710 222 100 30.2% 3,096 46.5 % les and Stockhold Current liabilities: Accounts payable Income tax payable Short-term debt Other Total current liabilities Long-term debt Other liabilities Total liabilities Stockholders' equity: Common stock Retained earnings Equity Accumulated other comprehensive (loss) Total stockholders' equity Total liabilities and stockholders' equity GA $ 920 $ 44 150 55 1,169 6,111 1,150 8,430 2 1,526 (210) 1,318 9,748 $ 900 $ 64 90 60 1,114 3,096 1,050 5,260 2 1,610 (220) 1,392 6,652 $ 20 (20) 60 (5) 55 3,015 100 3,170 (84) 10 (74) 3,096 2.2 % (31.3) 66.7 (8.3) 4.9 97.4 9.5 60.3 (5.2) 4.5 (5.3) 46.5 % Smith Corporation Statements of Income (Adapted) Year Ended December 31, 2018 and 2017 2018 (Dollar amounts in millions) Net revenues Cost of goods sold Gross profit General and administrative expenses Income from operations Interest expense, net Income before income taxes Provision for income taxes Net income Print Done $ 9,840 $ 4,095 5,745 3,500 2,245 449 1,796 1,304 492 $ 2017 9,300 5,200 4,100 3,700 400 160 240 210 30 S12-9 (similar to) The financial statements of Smith Corporation follow: (Click the icon to view the assets section of the balance sheet.) ( (Click the icon to view the liabilities and stockholders' equity sections of the balance sheet.) (Click the icon to view the income statement.) a. Compute the rate of return on sales for 2018. (Enter currency amounts in millions as given in the question. Ignore interest expense in your analysis and enter "0" for any zero balances. Round your answer to the nearest tenth of a percent, X.X%.) Interest expense )/ Net income )/ LO Calculate these profitability measures for 2018. Show each computation. a. Rate of return on sales. b. Asset turnover ratio. c. Rate of return on total assets. d. Leverage (equity multiplier) ratio. e. Rate of return on common stockholders' equity. f. Is Smith's profitability strong, medium, or weak? parts remaining Choose from any list or enter any number in the input fields and then click Check Answer. = Clear All Question Help ▼ = Rate of return on sales % Check Answer ?

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a Rate of return on sales Earning before Interest and taxes or income from operations Net Sales b As... View the full answer