Question

Compare Income Statements and Balance Sheets of Competitors a. Following are selected income statements from two pharmaceutical companies, Pfizer and Dr. Reddy's, for their respective 2018 fiscal years. Express each income statement amount as a percentage of sales. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Income Statement ($ millions) Pfizer Dr. Reddy's Sales $46,136 096 $1,876 096 Cost of goods sold 11,248 096 1,009 096 Gross profit 34,888 096 867 096 Total expenses 26,841 096 878 096 Net income $8,047 096 $(11) 096 b. Following are selected balance sheets from two pharmaceutical companies, Pfizer and Dr. Reddy's, for their respective 2018 fiscal years. Express each balance sheet amount as a percentage of total assets. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Balance Sheet ($ millions) Pfizer Dr. Reddy's Current assets $42,936 096 $1,448 096 Long-term assets 109,496 096 1,781 096 Total assets $152,432 096 $3,229 096 Current liabilities $27,398 0 % $920 096 Long-term liabilities 54,873 096 390 096 Total liabilities 82,271 096 1,310 096 Stockholders' equity 70,161 096 1,919 0 % Total liabilities and equity $152,432 096 $3,229 096

Answer 1

a.

Income Statement	Pfizer	Percentage	Dr. Reddy's	Percentage
Sales	$46,136	100.0%	$1,876	100.0%
Cost of goods sold	$11,248	24.4%	$1,009	53.8%
Gross Profit	$34,888	75.6%	$867	46.2%
Total expenses	$26,841	58.2%	$878	46.8%
Net Income	$8,047	17.4%	$(11)	0.6%

Percentage = (Amount / Sales amount) * 100

b.

Balance sheet	Pfizer	Percentage	Dr. Reddy's	Percentage
Current assets	$42,936	28.2%	$1,448	44.8%
Long term assets	$109,496	71.8%	$1,781	55.2%
Total assets	$152,432	100%	$3,229	100.0%
Current liabilities	$27,398	18.0%	$920	28.5%
Long term liabilities	$54,873	36.0%	$390	12.1%
Total liabilities	$82,271	54.0%	$1,310	40.6%
Stockholders Equity	$70,161	46.0%	$1,919	59.4%
Total liabilities and equity	$152,432	100.0%	$3,229	100.0%

Percentage = (Amount / Total assets) * 100