RESEARCH AND DEVELOPMENT - Financial ReportingAlert Industries has spent $5 billion over the last three years indeveloping a new drug labeled COVEX 22. FDA approval is expectedby the end of the month, at which time the drug will be available for sale.None of Alert's competitors has a product similar to COVEX 22, and themedical community is anxiously awaiting availability of this drug.Although COVEX 22 promises to be a "wonder drug" with huge financialsuccess, Alert's income statements for the last few years have shownsubstantial losses and Alert's statement of financial position only includes$ 0.3 billion product COVEX 22 among the assets of the business.Explain why one of Alert's seemingly most valuable assets apparently hasbeen reported for only $0.3 billion in the statement of financial position,and why Alert's income statements for the past few years reportedsubstantial losses.

A loss is occurred when the expenses of the company are greater than the revenues. The difference…

Explain why one of Alert's seemingly most valuable assets apparently has been reported for only $0.3 billion in the statement of financial position, and why Alert's income statements for the past few years reported substantial losses.

Explain why one of Alert's seemingly most valuable assets apparently has been reported for only $0.3 billion in the statement of financial position, and why Alert's income statements for the past few years reported substantial losses.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nn.21. Subject :- Account
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Has Barnes & Noble been profitable in the last three years?
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