Company: Johnson & Johnson Data for the year ended December 31, 2023:ItemAmountCash and Cash Equivalents$55,000,000Accounts Payable$25,000,000Inventory$35,000,000Net Sales$350,000,000Operating...
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Accounting
Company: Johnson & Johnson Data for the year ended December 31, 2023:
Item
Amount
Cash and Cash Equivalents
$55,000,000
Accounts Payable
$25,000,000
Inventory
$35,000,000
Net Sales
$350,000,000
Operating Expenses
$200,000,000
Requirements:
Calculate Johnson & Johnson's current ratio.
Determine Johnson & Johnson's inventory turnover ratio.
Analyze the impact of accounts payable on Johnson & Johnson's working capital.
Discuss how Johnson & Johnson recognizes revenue from pharmaceutical sales.
Evaluate Johnson & Johnson's liquidity using the quick ratio.
Assess how the Income Measurement Objective is crucial in Johnson & Johnson’s financial transparency and investor confidence.
Answer & Explanation
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