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rep 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 1. Is Evan's profitability strong, medium, or weak? as given in the question. Ignore interest expense in your analysis and enter for an 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.) (Click the icon to view the income statement.) Calculate these profitability me a. Rate of return on sales. b. Asset turnover ratio. c. Rate of return on total as d. Leverage (equity multiplie e. Rate of return on commo f. Is Evan's profitability stro a. Compute the rate of retum on sales for 2018. (Enter currency amounts in millions as given in the question, Ignore Interest expense in your analysis percent, X.X%) Net income Preferred dividends Net sales - Rate of return on sales / Data Table - ow: of the mputation Stock mont.) Evan Corportion Balance Sheets (Adapted) December 31, 2018 and 2017 Enter Increase (Decrease) Amount Percentage 2018 2017 inces. Round vided $ 1,200 $ 910 $ 290 31.9 % 4 70 (Dollar amounts in millions) Assets Current assets: Cash and cash equivalents Short-term investments Receivables, net Inventories Prepaid expenses and other assets Total current assets Property, plant, and equipment, net 240 250 (66) (10) 20 (70) (94.3) (4.0) 25.0 80 100 262 332 (21.1) 1,806 1,642 164 10.0 3,842 3,350 492 14.7 4 inp Print Done pm Evan Corporation Balance Sheet (Adpated) December 31, 2018 and 2017 Increase (Decrease) Amount Percentage 2018 2017 pnce 970 $ 880 $ 90 50 80 (Dollar amounts in millions) Liabilities and Stockholders' Equity Current liabilities: Accounts payable Income tax payable Short-term debt Other Total current liabilities Long-term debt Other liabilities (30) 10.2% (37.5) 9.1 110 10 120 65 70 (5) (7.1) 1,205 1.140 65 5.7 865 3,805 1.100 29.4 2,940 1,010 90 8.9 400 Print Done sheet Comp quity s equity. weak? amour 2017 or any zero balances 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 Interest expense, net 347 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 and til Print Done GEBRA Increase (Decrease) Amount Percentage 2018 2017 1,200 $ 910 $ 290 inces. Round 4 70 240 (Dollar amounts in millions) Assets Current assets: Cash and cash equivalents Short-term investments Receivables, net Inventories Prepaid expenses and other assets Total current assets Property, plant, and equipment, net Intangible assets Other assets 31.9 % (94.3) (4.0) 25.0 250 (66) (10) 20 (70) 100 80 262 332 (21.1) 1,806 1,642 164 10.0 3,350 492 14.7 3,842 1.010 800 20.2 840 710 170 90 12.7 S 7,458 $ Total assets 6,542 $ 916 14.0% 970 $ 880 S 90 50 80 (30) 10.2 % (37.5) 9.1 120 10 110 70 65 (7.1) (5) 65 1,205 1.140 5.7 ances. Rount 865 29.4 3,805 1,100 2,940 1,010 5,090 90 Accounts payable Income tax payable Short-term debt Other Total current liabilities Long-term debt Other liabilities Total liabilities Stockholders' equity: Common stock Retained earings Accumulated other comprehensive (loss) Total stockholders' equity Total liabilities and stockholders' equity 8.9 6,110 1,020 20.0 2 2 (7.0) 1,506 (160) 1,620 (170) 1,452 (114) 10 5.9 1,348 (104) (7.2) $ 7.458 $ 6,542 $ 916 14.0 %
