Our group has recieved the following feed back from our professor:

- Current Ratio for Gilead both sides

2- Gross (Profit) Margin Percentage Net sales for Celgene, Wrong both sides for Gilead

3-Rate of Return (Net Profit Margin) on Sales only for Gilead Company Net Income. In my previous comments

the same mistakes

4- Inventory Turnover , Average Inventory for both companies has wrong number .

5- Days' Inventory Outstanding (DIO) you have Inventory Turnover in both companies

6- Asset turnover you have Average Total Assets both companies has wrong number .

7-Rate of Return on Total Assets (ROA) you have wrong ratio the correct for Celgene is 7.2 I have already

gave out the result for Celgene. and for Gilead you are less in one point.

8- Times Interest-Earned Ratio you have Income From Operations has wrong number for both companies

9-Dividend Yield on Common Stock you have Market Price per Share of Common Stock for Celgene has

wrong number and for Gilead company both side of the formula.

10- Free cash flow wrong for both companies

Please do the necessary correction . Thank you

Below are our answers:

Earnings per Share of Common Stock (basic - common) As given in the income statement $2.57 $10.08 Current Ratio Current Assets $10,868 = 3.67 $24,763 = 2.50 Current Liabilities $2,959 $9,891 Gross (Profit) Margin Percentage Gross Margin $10,797 = 96.2% $28,145 = 87.5% Net Sales $11,229 $32,157 Rate of Return (Net Profit Margin) on Sales Net Income $1,999 = 17.8% $13,488 = 45.0% Net Sales $11,229 $29,953 Inventory Turnover Cost of Goods Sold $438 0.9 $4,261 2.7 Average Inventory $498 times $1,587 times Days' Inventory Outstanding (DIO) 365 Days 365 = 415 365 = 0 Inventory Turnover 0.880 days 1,771.0 days Accounts Receivable Turnover Net Credit Sales $11,815 = 7.8 $29,953 = 5.8 Average Net Accounts Receivable $1,521 $5,184 Days' Sales Outstanding (DSO) 365 365 = 49.3 365 = 62.9 Receivable Turnover Ratio 7.4 days 5.8 days Asset Turnover Net Sales $11,185 = 0.40 $29,953 = 0.53 Average Total Assets $28,086 $56,977 Rate of Return on Total Assets (ROA) Rate of Return on Sales times Asset Turnover 17.8%*.40 = 7.1% 45%*.53 = 23.7% Debt Ratio Total Liabilities $21,486 = 76.5% $37,614 = 66.0% Total Assets $28,086 $56,977 Times Interest-Earned Ratio Income From Operations $3,122 = 6.2 17,196 = 17.8 Interest Expense $500 964 Dividend Yield on Common Stock Dividend per Share of Common Stock $0.00 = 0.0% $0.43 = 0.4% (Please follow the Course Project instructions to calculate the current dividend yield.) Market Price per Share of Common Stock $122.14 $103.58 Rate of Return on Common Stockholders' Equity (ROE) Net Income - Preferred Dividends $1,999 = 31.9% $13,488 = 72.1% Average common stockholders' equity $6,259 $18,711 Free Cash Flow Net Cash Provided by Operating Activities minus Cash Payments Earmarked for Investments in Plant Assets = $3,122 $17,196 = Price-Earnings Ratio (Multiple) Market Price as of 12/30/2016 $115.75 = 45 $71.61 = 7 (Please see the Course Project instructions for the dates to use for this ratio.) EPS $2.57 $10.08

Can you help us correct the anwers?