4. Financial Statement Analysis for the three-year period 20202022 fiscal years: a. What are J\&J's two largest assets on the balance (in dollar amounts)? How do Johnson \& Johnson these assets reflect J\&J's strategy? Integrated Case - Part 1 b. What is J\&J's largest current liability (in dollar amount)? What does it represent? c. What is J\&J's largest liability (in dollar amount)? In what types of assts did J\&J This is an integrated case involving Johnson \& Johnson (J\&J) that consists of 4 parts to be likely invest this financing? completed over the term of this course. The case results in an integrated illustration of the six sequential steps in financial statement analysis. J\&J is a multinational corporation that develops medical devices, pharmaceuticals, and consumer packaged goods. As stated in its Form 10-K for fiscal year 2022 dated Jan. 2, 2023: For more detailed information on J\&J's products, customers, and business model can be retrieved from the company's website: https://www.jnj.com/about-jnj. J\&J prepares its financial statements in accordance with U.S. GAAP. The annual Form 10-Ks can be retrieved from J\&J's Investor Information page using the SEC Filings link under Investor Relations caption at https://www.investor.jnj.com/. You will find the appropriate 10-Ks by searching for "Annual Filings" with "Filing Year" of 2023 for fiscal year 2022, 2022 for fiscal year 2021, and so on. J\&J's fiscal year ends on the Sunday closest to nearest to the end of the month of December. Normally each fiscal year consists of 52 weeks, but every five or six years the fiscal year consists d. What does J&J report in accumulated other comprehensive income (loss)? What of 53 weeks (52-53 week fiscal year). does the amount represent? When, if ever, will these gains and losses appear in the income statement? The Financial Statement Analysis Package (FSAP) is a user-friendly, adaptable series of Excel- e. What type of transactions give rise to the primary source of J\&J's revenue? At the based spreadsheet templates created by the authors of your textbook. FSAP enables you to end of each fiscal year, what does J\&J have to estimate to measure total (net) manually input financial statement data for a company and then perform financial statement revenues for the fiscal year? analysis, forecasting, and valuation. FSAP contains five spreadsheets: Data, Analysis, Forecasts, f. What types of expenses does J\&J likely include in (1) cost of goods sold and (2) Forecast Development, and Valuation. The FSAP template and user guide are available in general and administrative expenses? Blackboard in the content folder Integrated Case Johnson \& Johnson. For this part of the g. J\&J reports interest expense that is less than interest income in years 2022 and integrated case, you will be utilizing the FSAP. 2021, and more than interest income in 2021. How would explain this trend? Required: 5. Interpreting Financial Statements (using common-size and percentage change statements on the Analysis tab in the FSAP template) a. During this three-year period, how did the proportion of total liabilities change relative to the proportion of shareholders' equity? What does this imply about changes in J\&J's leverage? What influence does COVID-19 have on this change? b. How did net income as a percentage of total revenues change from fiscal 2020 to fiscal 2022? Identify the most important reasons form this change. c. Does J\&J generate high or low profit margins? How do J\&J's profit margins relate to the company's strategy? 4. Financial Statement Analysis for the three-year period 20202022 fiscal years: a. What are J\&J's two largest assets on the balance (in dollar amounts)? How do Johnson \& Johnson these assets reflect J\&J's strategy? Integrated Case - Part 1 b. What is J\&J's largest current liability (in dollar amount)? What does it represent? c. What is J\&J's largest liability (in dollar amount)? In what types of assts did J\&J This is an integrated case involving Johnson \& Johnson (J\&J) that consists of 4 parts to be likely invest this financing? completed over the term of this course. The case results in an integrated illustration of the six sequential steps in financial statement analysis. J\&J is a multinational corporation that develops medical devices, pharmaceuticals, and consumer packaged goods. As stated in its Form 10-K for fiscal year 2022 dated Jan. 2, 2023: For more detailed information on J\&J's products, customers, and business model can be retrieved from the company's website: https://www.jnj.com/about-jnj. J\&J prepares its financial statements in accordance with U.S. GAAP. The annual Form 10-Ks can be retrieved from J\&J's Investor Information page using the SEC Filings link under Investor Relations caption at https://www.investor.jnj.com/. You will find the appropriate 10-Ks by searching for "Annual Filings" with "Filing Year" of 2023 for fiscal year 2022, 2022 for fiscal year 2021, and so on. J\&J's fiscal year ends on the Sunday closest to nearest to the end of the month of December. Normally each fiscal year consists of 52 weeks, but every five or six years the fiscal year consists d. What does J&J report in accumulated other comprehensive income (loss)? What of 53 weeks (52-53 week fiscal year). does the amount represent? When, if ever, will these gains and losses appear in the income statement? The Financial Statement Analysis Package (FSAP) is a user-friendly, adaptable series of Excel- e. What type of transactions give rise to the primary source of J\&J's revenue? At the based spreadsheet templates created by the authors of your textbook. FSAP enables you to end of each fiscal year, what does J\&J have to estimate to measure total (net) manually input financial statement data for a company and then perform financial statement revenues for the fiscal year? analysis, forecasting, and valuation. FSAP contains five spreadsheets: Data, Analysis, Forecasts, f. What types of expenses does J\&J likely include in (1) cost of goods sold and (2) Forecast Development, and Valuation. The FSAP template and user guide are available in general and administrative expenses? Blackboard in the content folder Integrated Case Johnson \& Johnson. For this part of the g. J\&J reports interest expense that is less than interest income in years 2022 and integrated case, you will be utilizing the FSAP. 2021, and more than interest income in 2021. How would explain this trend? Required: 5. Interpreting Financial Statements (using common-size and percentage change statements on the Analysis tab in the FSAP template) a. During this three-year period, how did the proportion of total liabilities change relative to the proportion of shareholders' equity? What does this imply about changes in J\&J's leverage? What influence does COVID-19 have on this change? b. How did net income as a percentage of total revenues change from fiscal 2020 to fiscal 2022? Identify the most important reasons form this change. c. Does J\&J generate high or low profit margins? How do J\&J's profit margins relate to the company's strategy