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Using vertical analysis (show your calculations), present the following values for this year and last year: gross profit margin net profit margin (use the last
Using vertical analysis (show your calculations), present the following values for this year and last year: gross profit margin net profit margin (use the last "net income" line on the statement) Comment on changes: oAre sales increasingly profitable? oHow are gross profit and net income changing, as dollar values? O (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2018 2017 81,581 Sales to customers 76,450 Cost of products sold 27,091 25,439 Gross profit Selling, marketing and administrative expenses 54,490 51,011 22,540 21,520 Research and development expense 10,775 10,594 In-process research and development 1,126 408 Interest income (611) (385) Interest expense, net of portion capitalized (Note 4) 1,005 934 Other (income) expense, net (42) 1,405 Restructuring (Note 22) 251 309 Earnings before provision for taxes on income 17,999 17,673 Provision for taxes on income (Note 8) 2,702 16,373 15,297 1,300 S Net earnings Net earnings per share (Notes 1 and 15) Basic 5.70 0.48 5.61 0.47 Diluted Average shares outstanding (Notes 1 and 15) 2,692.0 Basic 2,681.5 2,728.7 Diluted 2,745.3 conform to current year presentation (adoption of ASU 2017-07) *Prior years amounts were reclassified
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