Presented below are condensed financial statements adapted from those of two actual companies competing in the pharmaceutical industryJohnson and Johnson (J J) and Pfizer, Inc ($ in millions, except per share amounts) Balance Sheets ($ in millions, except per share data) J J Pfizer Assets Cash $ 5,377 $ 1,520 Short term investments 4,146 10,432 Accounts receivable (net) 6,574 8,775 Inventory 3,588 5,837 Other current assets 3,310 3,177 Current assets 22,995 29,741 Property, plant, and equipment (net) 9,846 18,287 Intangibles and other assets 15,422 68,747 Total assets $ 48,263 $ 116,775 Liabilities and Shareholders' Equity Accounts payable $ 4,966 $ 2,601 Short term notes 1,139 8,818 Other current liabilities 7,343 12,238 Current liabilities 13,448 23,657 Long term debt 2,955 5,755 Other long term liabilities 4,991 21,986 Total liabilities 21,394 51,398 Common stock (par and additional paid in capital) 3,120 67,050 Retained earnings 30,503 29,382 Accumulated other comprehensive income (loss) (590 ) 195 Less Treasury stock and other equity adjustments (6,164 ) (31,250 ) Total shareholders' equity 26,869 65,377 Total liabilities and shareholders' equity $ 48,263 $ 116,775 Income Statements Net sales $ 41,862 $ 45,188 Cost of goods sold 12,176 9,832 Gross profit 29,686 35,356 Operating expenses 19,763 28,486 Other (income) expensenet (385 ) 3,610 Income before taxes 10,308 3,260 Income tax expense 3,111 1,621 Net income $ 7,197 $ 1,639 Basic net income per share $ 2 42 $ 0 22 This is before income from discontinued operations Evaluate and compare the two companies by responding to the following questions Note Because two year comparative statements are not provided, you should use year end balances in place of average balances as appropriate Required 1 For both companies, compute the ratios below (Consider 365 days a year Do not round intermediate calculations Round Asset Turnover answers to 3 decimal places and other final answers to 2 decimal places ) J J Pfizer Receivables Turnover times times Average Collection Period days days Inventory Turnover times times Average Days in Inventory days days Profit Margin Asset Turnover times times Return on Assets Equity Multiplier Return on Equity , Presented below are condensed financial statements adapted from those of two actual companies competing in the pharmaceutical Industry Johnson and Johnson (J J) and Pfizer, Inc ($in millions, except per share amounts) Balance Sheets ($ in nition, except pur share data) tizer Assetas $ 5,373 $ 1,520 Short term investments 10,432 Accounts receivable net) 6,544 Inventory 3,500 5,03 Other current 3,310 3,113 Current 22,993 29,740 Property, plant, and equipment inet) 9 46 18,207 Integibles and other seat 15, 422 68,743 Total watu $48,263 $116,775 Liabilities and shareholders' Equity Account payable $ 2,603 Short term notes 1,139 Other current liabilities 7 34 12,231 Current liabilities 13,440 23,653 Long term dat 5,753 Other long term liabilities 21 15 Total liabilities 21,394 51,390 Common stock (par and additional paid in capital 3, 120 67,050 Retained earning 30,503 29,312 Acculated other comprehensive income 1s) 1590) 195 Lees Dressury stock and other equity adjustsasta 16,164) 31,250) Total ahazuholders' equity 26,61 65, 373 Total liabilities and whareholders' wity $48,263 $116,775 Income Statements Het zales $41,562 Cost of goods sold 12,176 9 632 Grow Predit 29,636 35,356 Operating expected 19,63 28,406 Other (income) expense 305) 3,610 Income before tam 10,300 3 26 Income tax expense 3,111 1,621 Net in $ 7 117 $ 1,631 Duzie met income per share 5 0 22 This is before income from discontinued operations, Evaluate and compare the two companies by responding to the following questions Note Because two year comparative statements are not provided, you should use year end balances in place of average balances as appropriate Required 1 For both companies, compute the ratios below (Consider 365 days a year Do not round Intermediate calculations Round Asset Turnover answers to 3 decimal places and other final answers to 2 decimal places ) J J Receivables Tumover Average Collection Period Inventory Turnover Average Days in Inventory Proft Margin Assut Tumower Return on Assets Equity Multiplier Return on Equity times daya Imas daya imes Pfizer imes daya imes daya X imes

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Presented below are condensed financial statements adapted from those of two actual companies competing in the pharmaceutical industryJohnson and Johnson (J&J) and Pfizer, Inc. ($

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Presented below are condensed financial statements adapted from those of two actual companies competing in the pharmaceutical industryJohnson and Johnson (J&J) and Pfizer, Inc. ($ in millions, except per share amounts).

Balance Sheets ($ in millions, except per share data)
	J&J			Pfizer
Assets:
Cash	$	5,377		$	1,520
Short-term investments		4,146			10,432
Accounts receivable (net)		6,574			8,775
Inventory		3,588			5,837
Other current assets		3,310			3,177
Current assets		22,995			29,741
Property, plant, and equipment (net)		9,846			18,287
Intangibles and other assets		15,422			68,747
Total assets	$	48,263		$	116,775
Liabilities and Shareholders' Equity:
Accounts payable	$	4,966		$	2,601
Short-term notes		1,139			8,818
Other current liabilities		7,343			12,238
Current liabilities		13,448			23,657
Long-term debt		2,955			5,755
Other long-term liabilities		4,991			21,986
Total liabilities		21,394			51,398
Common stock (par and additional paid-in capital)		3,120			67,050
Retained earnings		30,503			29,382
Accumulated other comprehensive income (loss)		(590	)		195
Less: Treasury stock and other equity adjustments		(6,164	)		(31,250	)
Total shareholders' equity		26,869			65,377
Total liabilities and shareholders' equity	$	48,263		$	116,775
Income Statements
Net sales	$	41,862		$	45,188
Cost of goods sold		12,176			9,832
Gross profit		29,686			35,356
Operating expenses		19,763			28,486
Other (income) expensenet		(385	)		3,610
Income before taxes		10,308			3,260
Income tax expense		3,111			1,621
Net income	$	7,197		$	1,639	*
Basic net income per share	$	2.42		$	0.22

*This is before income from discontinued operations. Evaluate and compare the two companies by responding to the following questions. Note: Because two-year comparative statements are not provided, you should use year-end balances in place of average balances as appropriate. Required: 1. For both companies, compute the ratios below. (Consider 365 days a year. Do not round intermediate calculations. Round "Asset Turnover" answers to 3 decimal places and other final answers to 2 decimal places.)

	J&J		Pfizer
Receivables Turnover		times		times
Average Collection Period		days		days
Inventory Turnover		times		times
Average Days in Inventory		days		days
Profit Margin		%		%
Asset Turnover		times		times
Return on Assets		%		%
Equity Multiplier
Return on Equity		%		%

, Presented below are condensed financial statements adapted from those of two actual companies competing in the pharmaceutical Industry-Johnson and Johnson (J&J) and Pfizer, Inc. ($in millions, except per share amounts) Balance Sheets ($ in nition, except pur share data) tizer Assetas $ 5,373 $ 1,520 Short-term investments 10,432 Accounts receivable net) 6,544 Inventory 3,500 5,03 Other current 3,310 3,113 Current 22,993 29,740 Property, plant, and equipment inet) 9.46 18,207 Integibles and other seat 15, 422 68,743 Total watu $48,263 $116,775 Liabilities and shareholders' Equity: Account payable $ 2,603 Short-term notes 1,139 Other current liabilities 7.34 12,231 Current liabilities 13,440 23,653 Long-term dat 5,753 Other long-term liabilities 21.15 Total liabilities 21,394 51,390 Common stock (par and additional paid-in capital 3, 120 67,050 Retained earning 30,503 29,312 Acculated other comprehensive income 1s) 1590) 195 Lees: Dressury stock and other equity adjustsasta 16,164) [31,250) Total ahazuholders' equity 26,61 65, 373 Total liabilities and whareholders' wity $48,263 $116,775 Income Statements Het zales $41,562 Cost of goods sold 12,176 9.632 Grow Predit 29,636 35,356 Operating expected 19,63 28,406 Other (income) expense 305) 3,610 Income before tam 10,300 3.26 Income tax expense 3,111 1,621 Net in $ 7.117 $ 1,631 Duzie met income per share 5 0.22 *This is before income from discontinued operations, Evaluate and compare the two companies by responding to the following questions. Note: Because two-year comparative statements are not provided, you should use year-end balances in place of average balances as appropriate Required: 1. For both companies, compute the ratios below. (Consider 365 days a year. Do not round Intermediate calculations. Round Asset Turnover answers to 3 decimal places and other final answers to 2 decimal places.) J&J Receivables Tumover Average Collection Period Inventory Turnover Average Days in Inventory Proft Margin Assut Tumower Return on Assets Equity Multiplier Return on Equity times daya Imas daya % imes % Pfizer imes daya imes daya X imes % % %