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accounting - going up and then down There would be no...

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Danielle Cirillo Accounting 201 September 6, 2007 E 1-5 B. If Merck decided to reduce it research and development expenses by 50% the short- term implications would be that the income would rise immediately because it is cutting back on the expenses their paying but then slowly decline. The long-term implications would be that the company wouldn’t be able to create new products because there wouldn’t be enough research to develop a new product. The stock market would react by
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Unformatted text preview: going up and then down. There would be no constant place it would continue to fluctuate. P1-4A B. Yes, there is enough money to provide enough adequacies for the company because there is enough money in the operating activities to fund the money used in investing activities and dividend expenses. The total net cash provided by operating activities was $29,000 and the total of the investing activates and dividend expenses was $17,000 which leave you with $12,000 profit....
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