The financial statements of Smith 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 turnover ratio. c. Rate of return on total assets. d. Leverage (equity multiplier) ratio. e. Rate of return on common stockholders' equity. f. Is Smith's profitability strong, medium, or 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%.) Interest expense )/ Net income = Rate of return on sales ) % Balance Sheets (Adapted) December 31, 2018 and 2017 Increase (Decrease) (Dollar amounts in millions) 2018 2017 Amount Percentage Assets $ 1,250 $ 960 $ 290 30.2 % Current assets: Cash and cash equivalents Short-term investments Receivables, net 12 50 (38) (120) (76.0) (40.0) 180 300 Inventories 86 40 46 115.0 240 354 Prepaid expenses and other assets (114) (32.2) Total current assets 1,768 1,704 64 3.8 6,070 3,360 2,710 80.7 Property, plant, and equipment, net Intangible assets 1,060 838 222 26.5 850 750 100 Other assets 13.3 $ 9,748 $ 6,652 $ 3,096 Total assets 46.5 % and Stockhol Equity $ 920 $ 900 $ 20 2.2 % Current liabilities: Accounts payable Income tax payable Short-term debt 44 64 (20) (31.3) 150 90 60 66.7 55 60 Other (5) (8.3) 1,169 Total current liabilities 1,114 55 4.9 Long-term debt 3,015 97.4 6,111 1,150 3,096 1,050 100 Other liabilities 9.5 Total liabilities 8,430 5,260 3,170 60.3 Stockholders' equity: Common stock 2 2 Retained earnings (5.2) 1,526 (210) 1,610 (220) (84) 10 Accumulated other comprehensive (loss) 4.5 Total stockholders' equity 1,318 1,392 (74) (5.3) $ 9,748 $ 6,652 $ 3,096 Total liabilities and stockholders' equity 46.5 % 2017 9,300 5,200 Smith Corporation Statements of Income (Adapted) Year Ended December 31, 2018 and 2017 (Dollar amounts in millions) 2018 Net revenues $ 9,840 $ Cost of goods sold 4,095 Gross profit 5,745 General and administrative expenses 3,500 Income from operations 2,245 449 Interest expense, net Income before income taxes 1,796 Provision for income taxes 1,304 $ 492 $ Net income 4,100 3,700 400 160 240 210 30 Print Done S12-9 (similar to) Question Help The financial statements of Smith 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 turnover ratio. c. Rate of return on total assets. d. Leverage (equity multiplier) ratio. e. Rate of return on common stockholders' equity. f. Is Smith's profitability strong, medium, or 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%.) Interest expense )/ Net income Rate of return on sales ) = % Choose from any list or enter any number in the input fields and then click Check Answer ? 5 parts Clear All Check Answer remaining