All parts a-f are formatted in the same way as a.

The financial statements of Evan 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.) 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 Evan's profitability strong, medium, or weak? (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 "O" for any zero balances. Round your answer to the nearest tenth of a percent, X.X%.) II Rate of return on sales % Balance Sheets (Adapted) December 31, 2018 and 2017 Increase (Decrease) 2018 2017 Amount Percentage (Dollar amounts in millions) Assets Current assets: Cash and cash equivalents 1,200 $ 4 Short-term investments Receivables, net 240 910 $ 70 250 80 332 Inventories 100 290 (66) (10) 20 (70) 164 492 31.9 % (94.3) (4.0) 25.0 (21.1) 10.0 14.7 262 1,806 1,642 Prepaid expenses and other assets Total current assets Property, plant, and equipment, net Intangible assets 3,842 3,350 1,010 840 170 20.2 710 800 Other assets 90 12.7 7,458 $ 6,542 $ 916 Total assets 14.0 % Evan Corporation Balance Sheet (Adpated) December 31, 2018 and 2017 Increase (Decrease) 2018 2017 Amount Percentage (Dollar amounts in millions) Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ Income tax payable 80 Short-term debt 970 $ 50 120 - 65 1.205 880 $ 8 0 110 70 1,140 90 (30) 10 (5) 6 5 10.2% (37.5) 9.1 (7.1) 5.7 29.4 Other Total current liabilities Long-term debt 865 3,805 1,100 2,940 1,010 90 Other liabilities 8.9 6,110 5,090 1,020 20.0 Total liabilities Stockholders' equity: Liabilities and Stockholders' Equity Current liabilities: $ 970 $ Accounts payable Income tax payable 50 Short-term debt 880 $ 80 110 70 1,140 120 65 1,205 90 (30) 10 (5) 6 5 10.2 % (37.5) 9.1 (7.1) 5.7 Other Total current liabilities Long-term debt 2,940 865 29.4 3,805 1,100 Other liabilities 1,010 90 8.9 Total liabilities 6,110 5,090 1,020 20.0 Stockholders' equity: Common stock Retained earnings (7.0) 2 1,506 (160) 1,348 7,458 $ Accumulated other comprehensive (loss) Total stockholders' equity 2 1,620 (170) 1,452 6,542 $ - (114) 10 (104) 916 5.9 (7.2) $ Total liabilities and stockholders' equity 14.0 % 2017 9,100 4,500 Evan Corporation Statements of Income (Adapted) Year Ended December 31, 2018 and 2017 (Dollar amounts in millions) 2018 Net revenues 9,800 $ Cost of goods sold 3,330 Gross profit 6,470 General and administrative expenses 3,000 Income from operations 3,470 347 Interest expense, net Income before income taxes 3,123 Provision for income taxes 1,261 1,862 $ Net income 4,600 2,900 1,700 130 1,570 250 1,320 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 "O" for any zero balances. Round your answer to the nearest tenth of a percent, X.X%.) = Rate of return on sales D - % Average common SE Average inventory Average net receivables Average total assets Cash Current assets Current liabilities Income from operations Interest expense Inventory Net income ly number in the input fields and then click Check Answer. Net sales Preferred dividends Short-term investments Clear All Check Answer Total assets