10,106 Assessing Research and Development Expenses Abbott Laboratories reports the following income statement, in partial form ($ millions): Year ended December 31 2014 Net sales $21,913 Cost of products sold Amortization of intangible assets 633 Research and development 1,551 Selling, general and administrative 6,814 Total operating cost and expenses Operating earnings $2,809 * including acquired in-process and collaborations R&D 19,104 a. Compute the percent of net sales that Abbott Laboratories spends on research and development (R&D). Round answer to one decimal place (i.e., 0.1426 = 14.3%) 0 % b. Using the financial statement effects template, describe how the accounting for R&D expenditures affects Abbott Laboratories' balance sheet and income statement. Enter answers in millions, as shown above. Use negative signs with answers, when appropriate. Transaction Cash Asset + Noncash Assets - Contra Assets = Liabilities + Contr. Capital + Earned Capital Revenue Expenses = Net income R & D expenditures 0 0 0 0 0 0 0 0 0