Suppose the following information was taken from the 2025 financial statements of pharmaceutical giant Merck & Co.

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Suppose the following information was taken from the 2025 financial statements of pharmaceutical giant Merck & Co. (All dollar amounts are in millions.)image



Instructionsa. After analyzing the data, prepare an income statement and a retained earnings statement for the year ending December 31, 2025.b. Suppose that Merck decided to reduce its research and development expense by 50%. What would be the short-term implications? What would be the long-term implications? How do you think the stock market would react?

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Accounting Tools For Business Decision Making

ISBN: 9781119791058

8th Edition

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

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