International Business Machines Corporation (IBM) reported the following on its 2018 form 10-K. $ millions 2018...

 

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International Business Machines Corporation (IBM) reported the following on its 2018 form 10-K. $ millions 2018 2017 2016 $71,632 $71,225 $71,927 Total revenue Research, development and engineering expense 5,379 5,590 5,726 Number of new patents awarded 8,190 8,139 7,279 Required a. Calculate IBM's common-size research, development and engineering expense for each year. What pattern do we observe? Note: Round percentage to one decimal places (for example, enter 6.7% for 6.6555%). 2018 RD&E expense common-size RD&E Expense relative to sales has RD&E per patent as a percentage RD&E spending per patent 2018 2017 96 96 b. Compute the research, development and engineering expense per new patent for each year. What pattern do we observe? Note: Round percentage to one decimal places (for example, enter 6.7% for 6.6555%). 2017 2016 96 96 over the years from 2016 to 2018. 2016 over the years from 2016 to 2018. International Business Machines Corporation (IBM) reported the following on its 2018 form 10-K. $ millions 2018 2017 2016 $71,632 $71,225 $71,927 Total revenue Research, development and engineering expense 5,379 5,590 5,726 Number of new patents awarded 8,190 8,139 7,279 Required a. Calculate IBM's common-size research, development and engineering expense for each year. What pattern do we observe? Note: Round percentage to one decimal places (for example, enter 6.7% for 6.6555%). 2018 RD&E expense common-size RD&E Expense relative to sales has RD&E per patent as a percentage RD&E spending per patent 2018 2017 96 96 b. Compute the research, development and engineering expense per new patent for each year. What pattern do we observe? Note: Round percentage to one decimal places (for example, enter 6.7% for 6.6555%). 2017 2016 96 96 over the years from 2016 to 2018. 2016 over the years from 2016 to 2018.

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