Accounting: Balance Sheet and Total Sales Change Essay

Submitted By jtanajia
Words: 959
Pages: 4
Open Document
Johnson and Johnson is a thriving company, I obtained this company’s annual report from the year of 2012. The main sections that are pinpointed in this report are the annual sales from the Pharmaceutical Segment Sales, Medical Devices and Diagnostics Segment Sales, also the Consumer Segment Sales. During the year of 2012 Johnson and Johnson Sales have been a rollercoaster with a great increase and a slight downfall in the Pharmaceutical area. Johnson and Johnson’s Pharmaceutical Segment made 25.4 billion sales in 2012; this department is also the eighth-largest pharmaceuticals business in the world and the sixth largest biotech business. Their primary consumer REMICA helped enhance the growth by 6.8%. REMICA is a biologic approved for the treatment of a number of immune-mediated inflammatory disease. Sales were negatively impacted by the generic competition LEVAQUIN. Through December 2012 to September 2012 Johnson and Johnson’s Pharmaceutical Segment has thrived and continue to thrive with their marketing products. The total sales change in total is 4.0% and in Operational is 6.8%. Their Medical Devices and Diagnostic (MD&D) Segment had an overall sale of 27.4 billion in the year of 2012. Johnson and Johnson is the leading medical technology business in the world, with an operational growth of 8.7 percent. Sales included the acquisition of Synthes, Inc., which also contributed 7.9 percent to worldwide (MD&D). Overall the market growth has slowed down. The sales change in total was 6.4% and in operational as mentioned before 8.7%. Consumer Sale Segment had a total of 14.4 billion worldwide sales in 2012. Johnson and Johnson Consumer business is the sixth-largest consumer health care in the world. The total sales change was 2.9 percent with an operational growth of 0.5 percent. In 2012, worldwide sales increased 3.4% to 67.2 billion, compared to an increase of 5.6% in 2011 and a decrease of 0.5% in 2010. The Analysis of Consolidated Sale Changes are the following; The Volume for 2012 made and increase to 5.7% from 2011 which was 3.1%. There was an increase by 2.6%. The price increased to 0.4% in 2012 from 2011 0.3%. There was a .1% increase in the Price. In 2012 the Currency decreased to 2.7% from 2011 2.8%. There was a .1% decrease in the Currency.
The Analysis of Consolidated Earnings before provision for taxes on income increased by 1.4 billion to 13.8 billion in 2012 compared to the 12.4 billion in 2011, an increase of 11.4%. According to the report the earnings before provision for taxes were favorable due to an increased gross profit of 0.9% billion, and a 0.1 % decrease is selling, marketing, and administrative due to cost containment initiatives. The total cost in research and development is as follows for the year 2012. Consumer expense for research was 622 million with a 4.3 percent on sales. Pharmaceutical expense for research was 5,362 million with a 21.2 percent on sales. Medical Devices and Diagnostic expense for research was 1,681 million with a 6.1 percent on sales. With a balance of 7,665 spent on research and development with an 11.4 percent on sales. The cost of research and development has increased by 1.6 percent. In 2012, the favorable change of 1.1 billion in other income expense, net was primarily due to lower expenses of 2.1 billion related to litigation including product liability. Interest Income Expense in 2012 decreased by 27 million compared to the previous year due to lower rates of interest earned and lower average
Show More

Related Documents: Accounting: Balance Sheet and Total Sales Change Essay

Accounts Receivable and Gst Essay

ACCT102-14A: Introductory Financial Accounting ACCT209-14A: Accounting and Managerial Decision Making SERIOUS SCIENCE Case Practice Set 1 Part 1 This material is made available for study purposes only for ACCT102-14A: Introductory Financial Accounting and ACCT209-14A: Accounting and Managerial Decision Making at the University of Waikato and use for other purposes is an infringement of copyright. Assessment Checklist Assessment What is required to be handed in…

Words 2598 - Pages 11

Basic Financial Statements

The Four Basic Financial Statements A study 1. Balance sheet, 2. Income statement, 3. Statement of retained earnings, 4. Statement of cash flows, These four financial statements are the basic statements normally prepared by profit-making organizations for use by investors, creditors, and other external decision makers. The four basic statements summarize the financial activities of the business. They can be prepared at any point in time (such as the end of the year, quarter, or month)…

Words 1552 - Pages 7

Essay on Generally Accepted Accounting Principles and Income Summary Account

ACCOUNTING Week 1: Define the main types of accounting Accounting encompasses information system that measures business activity, processes the data into reports, communicates the results to decision makers Two types: 1. Financial accounting 2. Managerial accounting Describe how decision makers use accounting information Decision makers: individuals, businesses, investors, creditors, government regulatory agencies, tax authorities, NPO, other users such as employees and labour unions Describe…

Words 3448 - Pages 14

Corrosion: Generally Accepted Accounting Principles and Balance Sheet Essay

Accounting – The Pensky File It is important that you have an understanding of financial documents that are used in businesses to record transactions, summarise their financial position and indicate their financial performance. Flow of Accounting Information All financial transactions of a business are drawn up into a variety of documents, starting with the journal entries. JOURNAL LEDGER TRIAL BALANCE REVENUE STATEMENT BALANCE SHEET 1. Journals – these are documents that record all…

Words 5651 - Pages 23

Essay about Financial Analysis of Walgreens vs. Cvs

Summary The initial intent of this analysis was to identify changes in accounting methods within the financial statements of Walgreens and CVS, as well as to compare and contrast their financial statements, in order to draw conclusions about which company had better earnings. However, in the process of this analysis, with the exception of a minor change to lease accounting by Walgreens, there were no major changes in accounting methods identified. In examining the financial statements for these…

Words 7290 - Pages 30

Accounting As A Form Of Communication

CHAPTER 1 Accounting as a Form of Communication OVERVIEW OF EXERCISES, PROBLEMS, AND CASES Estimated Time in Learning Outcomes Exercises Minutes Level 1. Identify the primary users of accounting information and their 1 5 Mod needs. 12* 10 Mod 14* 15 Mod 2. Explain the purpose of each of the financial statements 2 5 Easy and the relationships among them, and prepare a set of 3 15 Mod simple statements. 4 10 Mod 5 10 Mod 6 15 Easy 7 10 Easy 8 20 Diff 9 15 Mod 12*…

Words 8430 - Pages 34

ACC561 Week 1 Terms Essay

Terms for ACC/561 Accounts Receivable - They are amounts that customers owe on their account as a result from the sale of goods and services. Accounts Payable - Represents an organizations obligation to pay off a short-term debt. It is found on the balance sheet. Raw Materials Inventory - Total cost of all materials in stock that have not yet been used towards the finished product. Work In Process Inventory - Is the inventory of materials that have entered the production process. It refers…

Words 2005 - Pages 9

Essay on Chapter 2 Study Guide

CHAPTER STUDY OBJECTIVES 1. Identify the sections of a classified balance sheet. In a classified balance sheet, companies classify assets as current assets; long-term investments; property, plant, and equipment; or intangibles. They classify liabilities as either current or long-term. A stockholders’ equity section shows common stock and retained earnings. 2. Identify and compute ratios for analyzing a company’s profitability. Profitability ratios, such as earnings per share (EPS), measure aspects…

Words 3348 - Pages 14

Measuring And Evaluating Financial Position And Performance

Business School ACCT1501 Accounting and Financial Management 1A Session 1 2015 Week 2 Measuring & Evaluating Financial Position & Performance Student Handout Lecturer: Dr. Youngdeok Lim School of Accounting UNSW Moodle: https://moodle.telt.unsw.edu.au/login/index.php Session 1, 2015 ACCT1501 WEEK 2: Measuring & Evaluating Financial Position & Performance 1. Introduction Every commercial entity engages in transactions with other parties. For example, Woolworths buys products from suppliers…

Words 4141 - Pages 17

Principles Of Financial Statement Paper

Financial Statement Paper Monica Bertrand Acc/280 principles of Accounting August 17, 2011 Sandra Brown Financial Statement Paper Accounting is a service activity. The function of accounting is to provide quantitative information, dealing with finance, about economic entities that is intended to be used in making economic decision. Accounting is a systemic recognition, and a representation of financial information to assist in decision making. Every business generates profit…

Words 750 - Pages 3