The financial statements of Dowd 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 measures for 2018 Show each computation a. Rate of return on sales. b. Asset tumover ratio. c. Rate of return on total assets. d. Leverage (equity multiplier) ratio. e. Rate of return on common stockholders' equity f. Is Dowd's profitability strong, mediumor weak? a. Compute the rate of return on sales for 2018. (Enter currency amounts in millions as given in the question. Ignore interest expense in your analysis and enter "O" for any zero balances. Round your answer to the nearest tenth of a percent, X.X%) Rate of return on sales % Choose from any list or enter any number in the input fields and then click Check Answer 5 parts remaining Clear All Check Answer Dowd Corportion Balance Sheets (Adapted) December 31, 2018 and 2017 Increase (Decrease) Amount Percentage (Dollar amounts in millions) 2018 2017 Assets $ 1,200 $ 910 $ 290 Current assets: Cash and cash equivalents Short-term investments Receivables, net Inventories 4 70 31.9 % (94.3) (4.0) 25.0 240 (66) (10) 20 (70) 250 80 100 262 332 Prepaid expenses and other assets (21.1) 1,806 Total current assets 1,642 164 10.0 3,842 3,350 492 14.7 Property, plant, and equipment, net Intangible assets 20.2 1,010 800 840 710 170 90 Other assets 12.7 7,458 $ 6,542 $ 916 Total assets 14.0 % Increase (Decrease) Amount Percentage 2018 2017 (Dollar amounts in millions) Liabilities and Stockholders' Equity Current liabilities: $ 970 $ 880 $ 90 10.2 % Accounts payable Income tax payable Short-term debt 50 80 (37.5) 9.1 120 (30) 10 (5) 110 Other 65 70 (7.1) Total current liabilities (1,205 1,140 65 5.7 Long-term debt 29.4 3,805 1,100 2,940 1,010 865 90 Other liabilities 8.9 6,110 5,090 1,020 20.0 Total liabilities Stockholders' equity: Common stock Retained earnings Accumulated other comprehensive (loss) 2 2 (7.0) 1,506 (160) 1,620 (170) (114) 10 5.9 1,348 1,452 Total stockholders' equity (104) (7.2) $ 7,458 $ 6,542 $ 916 Total liabilities and stockholders' equity 14.0 % 2017 9,100 4,500 Dowd 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 3,000 General and administrative expenses Income from operations 3,470 347 Interest expense, net Income before income taxes 3,123 1,261 Provision for income taxes $ 1,862 $ Net income 4,600 2,900 1,700 130 1,570 250 $ 1,320