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E5-12. Profitability Analyses. Use the following excerpt from Dragonfly Corporation's balance sheet and its income statement to compute Dragonfly's profit margin and return on assets

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E5-12. Profitability Analyses. Use the following excerpt from Dragonfly Corporation's balance sheet and its income statement to compute Dragonfly's profit margin and return on assets for 2018 and 2019. Comment on Drag- onfly's profitability and changes in profitability from 2018 to 2019. Dragonfly's total assets at the end of 2017 were $157,534 million. Assets (dollars in millions) 2019 2018 Current Assets Cash and Cash Equivalents $ 13,420 $ 19,355 Marketable Securities 7,623 2,394 Accounts Receivable Trade, Net 22,120 20,872 Inventories 47,415 45,630 Prepaid Expenses and Other Receivables 1,312 1,264 Total Current Assets 91,890 89,515 Property, Plant, and Equipment, Net 67,045 65,762 Other Assets 3,770 3,773 $162,708 Total Assets $159,047 (in millions) 2019 2018 Sales $ 63,762 $ 61,890 Cost of Goods Sold 33,092 30,096 Gross Profit 30,670 31,794 Selling, General, and Administrative Expenses 15,335 15,897 Research and Development Expense 7,052 7,844 Interest Expense 145 142 Earnings Before Taxes 8,138 7,911 Income Tax Expense 2,848 2,769 Net Income $ 5,290 $ 5,142

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