• Pfizer Inc. invested $4 billion in a joint venture to develop new pharmaceutical products. The company reported the following financial information:
  • Investment in Joint Venture: $4 billion
  • Total Assets: $150 billion
  • Total Liabilities: $70 billion
  • Net Income: $15 billion

• Requirements:
  1. Calculate Pfizer's total assets after accounting for the investment in the joint venture.
  2. Prepare a balance sheet reflecting the investment in the joint venture and adjusted total assets.
  3. Analyze the impact of the joint venture investment on Pfizer's financial leverage.
  4. Discuss the accounting treatment of investments in joint ventures in Pfizer's financial statements.
  5. Evaluate the potential return on investment from Pfizer's participation in the joint venture.