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 Аbbott Мyers & Smith ($ millions) Laboratories Squibb Johnson Kline plc Pfizer Sales revenue Cost of sales $38,851 $21,244 $65,030 £27,387 $67,425 15,541 5,598 20,360 7,332 15,085 SG&A expense 12,757 5,160 20,969 8,826 19,468 R&D expense 4,129 3,839 7,548 4,009 9,112 Interest expense 530 145 571 799 1,681 Net income 4,728 5,260 9,672 5,458 10,051 Required a. Compute the profit margin (PM) and gross profit margin (GPM) ratios for each company. (As a British company, GlaxoSmithKline plc has a statutory tax rate of 26.5% in 2014; 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 GPM % % 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.)

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 Аbbott Мyers & Smith ($ millions) Laboratories Squibb Johnson Kline plc Pfizer Sales revenue Cost of sales $38,851 $21,244 $65,030 £27,387 $67,425 15,541 5,598 20,360 7,332 15,085 SG&A expense 12,757 5,160 20,969 8,826 19,468 R&D expense 4,129 3,839 7,548 4,009 9,112 Interest expense 530 145 571 799 1,681 Net income 4,728 5,260 9,672 5,458 10,051 Required a. Compute the profit margin (PM) and gross profit margin (GPM) ratios for each company. (As a British company, GlaxoSmithKline plc has a statutory tax rate of 26.5% in 2014; 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 GPM % % 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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