Reference no: EM132885802
Question - Assessing Research and Development Expenses Abbott Laboratories reports the following income statement, in partial form ($ millions):
Year ended December 31 2014
Net sales $23,024
Cost of products sold 10,663
Amortization of intangible assets 643
Research and development* 1,570
Selling, general and administrative 6,843
Total operating cost and expenses 19,719
Operating earnings $3,305
* including acquired in-process and collaborations R&D
Required -
a. Compute the percent of net sales that Abbott Laboratories spends on research and development (R&D).
b. Using the financial statement effects template, describe how the accounting for R&D expenditures affects Abbott Laboratories' balance sheet and income statement.
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: Compute the percent of net sales that Abbott Laboratories spends on research and development (R&D)
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