Question: Johnson & Johnson is preparing its financial statements for 2023. The following transactions and financial data are available: Transactions (in $ millions) Amount Cash Sales

Johnson & Johnson is preparing its financial statements for 2023. The following transactions and financial data are available:

Transactions (in $ millions)

Amount

Cash Sales

1,800

Credit Sales

900

Requirements:

  • Prepare Johnson & Johnson's income statement for 2023, focusing on revenue and expenses.
  • Calculate and interpret the current ratio and quick ratio.
  • Discuss the accounting treatment of goodwill and intangible assets.
  • Analyze the impact of changes in fair value of derivative financial instruments.
  • Prepare a statement of cash flows using the direct method for Johnson & Johnson.

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