Compute merck’s net operating income for the three years

Assignment Help Finance Basics

Reference no: EM131414321

Refer to the Merck income statement presented at the very beginning of the chapter, and note that the company reported climbing profits of $3.4 billion, $7.9 billion, and $13 billion in 2007, 2008, and 2009, respectively. Restructuring charges rose across the three years; equity income affiliates fell across the three years; and there were two very large non-operating items during the three-year period. In 2007 Merck booked a $4.9 billion charge associated with a litigation settlement, and in 2009 the company booked $10.7 billion in "other income." Discuss how each of these non-operating items influenced the basic accounting equation, and compute Merck's net operating income for the three years. Comment on Merck's earnings trend.

Reference no: EM131414321

Questions Cloud

Compute comprehensive income for 2009 : Describe how these activities are reflected on H&R Block's balance sheet, income statement, and statement of shareholders' equity

What are the conditions necessary for price discrimination : Explain how a monopolist can increase profits by price discriminating. What are the conditions necessary for price discrimination?

Can punishment be used as an effective form of motivation : Can punishment be used as an effective form of motivation in the workplace? Why or why not? Where and when is it appropriate to use punishment as a motivational tactic?

Identify both the strengths and weaknesses of the study : Problem statement.Review of literature.Research question, methodology (design, sampling, measurement,validity, data analysis, critique the methodology used by the author).Identify borh the strengths and weaknesses of the study.

Compute merck’s net operating income for the three years : Discuss how each of these non-operating items influenced the basic accounting equation, and compute Merck's net operating income for the three years. Comment on Merck's earnings trend.

Means for economic development : Who was the first administrator-statesman to attempt planning as a means for economic development?

Engineering economy in undergraduate coursework : Barry, an Oklahoma Crude Company engineer who did not take Engineering Economy in his undergraduate coursework, recommended that Oklahoma Crude purchase a special tool to reduce the cost of pumping oil out of the bayous of St. Martin Parish. As a..

Develop scenario illustrating how you in role as a manager : Develop a scenario illustrating how you, in your role as a manager, might use motivational concepts to create an environment where your employees are motivated and satisfied with their jobs.

How the basic accounting equation could have been affected : For each of the elements of these disclosures, discuss how the basic accounting equation could have been affected

User Account

All Pages