strategic-management

210 TOMLIN, MILHAUSER, GIERKE, LEFEBVRE, AND MARTINEZ
EXHIBIT 7 J&J Income Statements, 2006–2008
2008 2007 2006
Sales to costumers $63,747 61,095 53,324
Cost of products sold (with Depreciation) 18,511 17,751 15,324
Gross Profit 45,236 43,344 38,267
Selling, marketing and administrative
expenses 21,490 20,451 17,433
Research expense 7,577 7,680 7,125
Purchased in-process R&D 0 807 599
Restructuring 0 745 0
Interest income -361 -452 -829
Interest expense 435 296 63
Other (income) expense 3,666 534 -671
28,307 30,061 23,680
Earnings before provision for taxes
on income 16,929 13,283 14,587
Provision for taxes on income 3,980 2,707 3,534
Net earnings $12,949 10,576 11,053
Basic net earnings per share 4.62 3.67 3.76
Diluted net earnings per share 4.57 3.63 3.73
Source: Johnson & Johnson, Annual Report; marketwatch.com.
EXHIBIT 8 J&J Balance Sheets 2006–2008
Assets 2008 2007 2006
Current assets
Cash and cash equivalents $107,680 7,770 4,083
Marketable securities N/A 1,545 1
Accounts receivable trade, less allowances
for doubtful accounts 9,719 9,444 8,712
Inventories 5,052 5,110 4,889
Deferred taxes on income 3,430 2,609 2,094
Prepaid expenses and other receivables 3,430 3,467 3,196
Total current assets 34,377 29,945 22,975
Marketable securities, non-current N/A 2 16
Property, plant and equipment, net 14,365 14,185 13,044
Intangible assets, net 13,976 15,348 15,348
Goodwill, net 13,719 14,123 13,340
Deferred taxes on income 5,841 4,889 3,210
Other assets 2,634 3,170 2,623
Total assets $ 84,912 80,954 70,556
Liabilities and Shareholders’ Equity
Current liabilities
Loans and notes payable 3,732 2,463 4,579
Accounts payable 7,503 6,909 5,691
Accrued liabilities N/A 6,412 4,587
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