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Comparing Profitability Ratios for Competitors 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 Abbott Myers & Smith (5 millions) Laboratories Squibb Johnson Kline plc Pfizer Sales revenue 538,851 521,244 $65,030 27,387 $67,425 Cost of sales 15,541 5,598 20,360 7,332 15,085 SG&A expense 12,757 5,150 20,969 8,826 19466 R&D expense 4,129 7,548 4,009 9,112 Interest expense 530 571 799 1,681 Net income 4,728 5,260 9,672 5,458 10,051 145 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 94 91 24 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.) Bristol Johnson Glaxo Abbott Myers Smith Laboratories Squibb Johnson Kline plc R&D ETS SG&A ETS Pfizer 98 6 46 46 96 96 46 %

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