International Business Machines Corporation (IBM) reported the following on its 2018 form 10‑K. $ millions 2018 2017 2016 Total revenue $79,591 $79,139 $79,919 Research, development and engineering expense 5,379 5,590 5,726 Number of new patents awarded 9,100 9,043 8,088 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 2017 2016 RD&E expense common-size Answer Answer Answer
International Business Machines Corporation (IBM) reported the following on its 2018 form 10‑K. $ millions 2018 2017 2016 Total revenue $79,591 $79,139 $79,919 Research, development and engineering expense 5,379 5,590 5,726 Number of new patents awarded 9,100 9,043 8,088 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 2017 2016 RD&E expense common-size Answer Answer Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
Research and Development Expense
International Business Machines Corporation (IBM) reported the following on its 2018 form 10‑K.
| $ millions | 2018 | 2017 | 2016 |
|---|---|---|---|
| Total revenue | $79,591 | $79,139 | $79,919 |
| Research, development and engineering expense | 5,379 | 5,590 | 5,726 |
| Number of new patents awarded | 9,100 | 9,043 | 8,088 |
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 | 2017 | 2016 | |
|---|---|---|---|
| RD&E expense common-size | Answer
|
Answer
|
Answer
|
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