Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assessing Research and Development Expenses Abbott Laboratories reports the following income statement in partial form ($ millions): Year ended December 31 2018 Net sales $30,578

image text in transcribed

Assessing Research and Development Expenses Abbott Laboratories reports the following income statement in partial form ($ millions): Year ended December 31 2018 Net sales $30,578 Cost of products sold 12,706 Amortization of intangible assets 2,178 Research and development 2,300 Selling general and administrative 9.744 Total operating cost and expenses 26,928 Operating earnings $3,650 * including acquired in process and collaborations R&D 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%) 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 -2300 -2178 -2300 9,744 (9,744)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

For Wahlen/jones/pagachs Intermediate Accounting Reporting And Analysis, , 2 Terms

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

2nd Edition

1305405676, 9781305405677

More Books

Students also viewed these Accounting questions

Question

Write a literature review on "Dot Net Developer".

Answered: 1 week ago