Click on Financial Statements.

a. For the most recent year list the amounts reported for sales, cost of goods sold, and total net income. Does the amount reported for revenue represent cash received from customers during the year? If not, what does it represent? What does the amount reported for cost of goods sold represent? Is Merck a profitable company? How can you tell?

b. For the most recent year list the amounts reported for total assets, total liabilities, and total shareholders' equity. Does the accounting equation hold true? Are assets primarily financed with liabilities or shareholders' equity?

c. Does Merck use accrual-based or cash-based accounting? How can you tell?