The pharmaceutical industry spends billions each year on research and development. rather than capitalize these R&D expenditures as intangible assests, companies are required to charge them to expense in the year incurred. Perform a keyword search of Pharmaceutical Companies using the search engine of choice. Your search will result in a list of companies that research and develope pharmaceutical products. (Select 3 J&J- Pfizer- and Bayer) obtain their 10-K reports using Sec Edgar system. a) Determine the following: The total R&D expense for the most current year is The total R&D expense as a percentage of total operating costs and expenses Total R&D expense as a percentage of net sales The percentage by which operating income would have increased had the entire R&D expenditure been recorded as an intangible asset instead of being charged to expense. B) using information found, summarize briefly to a potential investor which company appears to be the most innovative and promising? explain.

http://s21.q4cdn.com/755037021/files/doc_financials/annualReports/2015/MRK_2015_Form_10-K_FINAL_r879.pdf

http://www.pfizer.com/investors/financial_reports/financial_reports

http://quicktake.morningstar.com/StockNet/SECDocuments.aspx?symbol=TEVA