Accounting: Balance Sheet and Total Sales Change Essay

Submitted By jtanajia
Words: 959
Pages: 4

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