{"id":73754,"date":"2022-06-22T03:19:14","date_gmt":"2022-06-22T03:19:14","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/financial-accounting-homework-help\/"},"modified":"2022-06-22T03:19:14","modified_gmt":"2022-06-22T03:19:14","slug":"financial-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/financial-accounting-homework-help\/","title":{"rendered":"Financial | Accounting homework help"},"content":{"rendered":"
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Due Day 3, Thursday<\/strong>\u00a0<\/p>\n

The pharmaceutical industry spends billions of dollars each year on research and development.\u00a0Rather than capitalize these R&D expenditures as intangible assets, companies are required to charge them to expense in the year incurred.\u00a0Perform a key word search of pharmaceutical companies using the search engine of your choice.\u00a0Select 2 of these companies and obtain their 10K report by using the SEC\u2019s EDGAR system or going directly to the websites of the company you choose.\u00a0For each company selected, determine:<\/strong><\/p>\n

    \n
  1. Total R&D expense for the most current year<\/strong><\/li>\n
  2. Total R&D expense as a percentage of total operating costs and expenses<\/strong><\/li>\n
  3. Total R&D expense as a percentage of net sales<\/strong><\/li>\n
  4. 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.<\/strong><\/li>\n
  5. Using information from the 10-K reports, summarize briefly the kinds of drugs being researched and developed by each of these companies. To a potential investor, which company appears to be the most innovative and promising? Please explain.<\/strong><\/li>\n<\/ol>\n

    Financial ratio analysis, 1<\/u><\/a><\/p>\n

    Financial ratio analysis, 2<\/u><\/a><\/p>\n

    Please present the dollar amount for each company’s sales, total R&D costs, total operating expenses including R&D costs, and operating income, and provide the supporting calculations for your %s.\u00a0<\/strong><\/p>\n

    R&D would typically be presented as a separate line item under operating expenses or alongside it.\u00a0To calculate R&D as a % of net sales is not difficult, since both items would be clearly presented on the income statement.\u00a0With operating expense data, care should be exercised on whether total operating expenses already contains R&D costs or are operating expenses presented separately from R&D costs.\u00a0Technically the R&D costs as a % of total operating expenses should be R&D divided by total operating expenses which include R&D, so we can see how much of the company’s on-going, recurrent expenses are made up of R&D.\u00a0Operating income should be presented as a separate line item on the income statement.\u00a0If not, subtract cost of sales and operating expenses (including R&D) from sales and you get operating income.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Due Day 3, Thursday\u00a0 The pharmaceutical industry spends billions of dollars each year on research and development.\u00a0Rather than capitalize these R&D expenditures as intangible assets, companies are required to charge them to expense in the year incurred.\u00a0Perform a key word search of pharmaceutical companies using the search engine of your choice.\u00a0Select 2 of these companies […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-73754","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/73754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=73754"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/73754\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=73754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=73754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=73754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}