Question

JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8) Net earnings 2018 81.581 27.091 54,490 22,540 10,775 1,126 (611) 1,005 1,405 251 17,999 2,702 15.297 2017 76,450 25,439 51,011 21,520 10,594 408 (385) 934 (42) 309 17,673 16,373 1,300 (368) 726 210 491 19,803 3,263 16,540 Net earnings per share (Notes 1 and 15) Basic Diluted 5.70 5.61 0.48 0.47 6.04 5.93 Average shares outstanding (Notes 1 and 15) Basic Diluted *Prior years amounts were reclassified to conform to current year presentation (adoption of ASU 2017-07) 2,681.5 2,728.7 2,692.0 2,745. 3 2 2,737.3 ,788.9 See Notes to Consolidated Financial Statements

Answer 1

Question 5

Book value of Property, plant and equipment was $ 17,035 (option B)

4. Property, Plant and Equipment At the end of 2018 and 2017, property, plant and equipment at cost and accumulated depreciation were (Dollars in Millions) 2018 2017 Land and land improvements Buildings and building equipment Machinery and equipment Construction in progress 807 829 11,240 11,176 25,949 25,992 3,876 3,448 Total property, plant and equipment, gross 41,851 41,466 Less accumulated depreciation 24,816 24,461 17,035 (1) Total property, plant and equipment, net 17,005 Net of assets held for sale on the Consolidated Balance Sheet for approximately $0.1 billion related to the divestiture of the Advanced Sterilization Products business and $0.1 billion related to the strategic collaboration with Jabil Inc., both of which were pending as of December 30, 2018 The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense capitalized in 2018, 2017 and 2016 was $86 million, $94 million and $102 million, respectively. Depreciation expense, including the amortization of capitalized interest in 2018, 2017 and 2016 was $2.6 billion, $2.6 billion and $2.5 billion, respectively Upon retirement or other disposal of property, plant and equipment, the costs and related amounts of accumulated depreciation or amortization are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds are recorded in camings

Question 4

See the Total PPE, gross amount $ 41,851

Option B is correct

Question 3

			2018		2017
Turnover ratio	Total sales / Accounts receivable net	81,581 / 14,098	5.79	76,450 / 13,490	5.67
Days to collect	1 / turnover ratio X 365		63.08		64.41

Yes the collection period has improved as compared to the prior year

Question 2

JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS At December 30, 2018 and December 31, 2017 (Dollars in Millio ns Except Share and Per Share Amounts) (Note 1) 2018 2017 Assets Current assets Cash and cash equivalents (Notes 1 and 2) 18,107 17,824 Marketable securities (Notes 1 and 2) 1,580 472 Accounts receivable trade, less allowances for doubtful accounts $248 (2017, $291) 14,098 13,490

See the allowance for doubtful account is $ 248. Option C is correct

Question 1

JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1) 2018 2016 2017 Sales to customers 81,581 76,450 71,890 Cost of products sold 25,439 27,091 21,789 Gross profit 54,490 51,011 50,101 Selling, marketing and administrative expenses 21,520 22,540 20,067 Research and development expense 10,775 10,594 9,143 In-process research and development 1,126 408 29 Interest income (368) (611) (385) Interest expense, net ofportion capitalized (Note 4) 1,005 934 726 (42) Other (income) expense, net 1,405 210 Restructuring (Note 22) 251 309 491 Eamings before provision for taxes on income 17,999 17,673 19,803 2,702 3,263 Provision for taxes on income (Note 8) 16,373 Net earnings 15,297 1,300 16,540

Answer is $ 15,297, option B