Question 3 Partially correct Mark 15.00 out of 20.00 Flag question Edit question & Comparing Profitability Ratios for Competitors Selected income statement data for Abbott Laboratories, Bristol-Myers Squibb Company, Johnson & Johnson, GlaxoSmithKline plc, and Pfizer, Inc. is presented in the following table: Bristol- Johnson Glaxo Abbott Myers Smith ($ millions) Laboratories Squibb Johnson Kline plc Pfizer Sales revenue $27,390 $19,258 $76,450 30,186 $52,546 Cost of sales 12,337 6,066 25,354 10,342 11,240 SG&A expense 9,117 4,687 21,420 9,672 14,784 R&D expense 2,235 6,411 10,554 4,476 7,657 Interest expense 904 196 934 734 1,270 Net income 477 975 1,300 2,169 21,355 Required a. Compute the profit margin (PM) and gross profit margin (GPM) ratios for each company. (As a British company, GlaxoSmithKline pic has a statutory tax rate of 19.25% in 2017 assume a statutory rate of 35% for all other companies.) (Round your answers to one decimal place.) Bristol- Johnson Glaxo Abbott Myers Smith Laboratories Squibb Johnson Kline plc Pfizer PM 1.7 % x 5.1 96 X 1.7 % x 7.296 x 40.6% X GPM 55 96 68.5 % 66.896 65.796 78.6 % & b. Compute the research and development (R&D) expense to sales ratio and the selling, general and administrative (SG&A) expense to sales ratio for each company. (Round your answers to one decimal place.) Bristol- Johnson Glaxo Abbott Myers Smith Laboratories Squibb Johnson Kline plc Pfizer R&D ETS 8.2 96 33.3 % 13.8 % 14.8 96 14.696 SG&A ETS 33.3 % 24.3% 28 96 3296 28.1 96 &