Below are income statements for Google and Yahool for fiscal 2011. Use these financial statements to answer the requirements. Required: a. How are the balance sheets and income statements of Google and Yahool affected by the accounting for R&D costs? b. Compute common-sized R\&D expense for both firms for the three-year period. Assess the differences and any trends that you notice. c. How can one evaluate the effectiveness of R\&D spending? Does the difference in R\&D as a percentage of sales necessarily imply that one company is more heavily invested in R\&D? Why might this not be the case? d. In your opinion, would Google and Yahoo favor captalizing R\&D expenses, if that were an available atternative