This brief project is designed to make you familiar with the contents of a business’s footnotes in an annual report. Please answer the following questions, using the Merck & Co, Inc. 2019 10-k.

1. What are the beginning and ending page numbers beginning with the first financial statement shown and ending with the final footnote following the financial statements?

2. The purpose of footnotes is to explain and clarify items shown on the financial statements. Please list the number and name of each of the footnotes, as well as the page the footnote appears. For instance, the first footnote following the financial statements is usually named “Summary of significant accounting policies.”

3. Describe Merck’s revenue recognition policy (this is usually in the first footnote, Summary of Significant Accounting Policies)

.4. Does Merck have any unearned revenues? Please describe what, in your opinion, constitutes this item (also sometimes referred to as deferred revenues).

5. What inventory cost flow assumption, if any, does Merck use, FIFO, LIFO? This information will be in a footnote to the financial statements.

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