You are going to review and analyze the financial statements of Johnson & Johnson and compare that to a publicly traded corporation. I have to compare Johnson & Johnson with the company I select, which is Staples inc Explain your findings (using the SEC.gov website as well as other resources): Does each company appear to be able to pay their current obligations? Why or why not? How are the companies currently financed? This may be with common stock, preferred stock, bonds, leases, or any combination of them. Do you think the financing is appropriate for each company? Which method of depreciation does the publicly traded company use? For the publicly traded company explain how you would improve the distribution or product/service line and to whom you would offer it to, based on the financial health of the company. Stating there are no improvements is not acceptable. Do they have a code of ethics? Which company do you think would be the better investment and why?

 

Comparing Johnson and Johnson with staple Inc.

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Comparing Johnson and Johnson with staple Inc.

This paper compares two companies, that is Johnson and Johnson with staple Inc based on their finances. Johnson and Johnson is a health company that deals with the pharmaceutical goods. On the other hand, the Staple Inc. is a retailing corporation. The Johnson and Johnson appear to a current liability. However, to Staple Inc, some of the debts are long-term because they take certain goods that take long before being removed from the stock. Therefore, the differences exist in the current obligations of the companies (Wahlen, Jones, & Pagach, 2017).

The source of finance of the Johnson and Johnson comes from the good and products that they produce. The company sells the products and makes profits. On the other hand, the companies also rely on other corporations that they can borrow.  On the other hand, the Staple Inc Company mostly relies on the goods that they get from different products for free (Stark & Wisconsin., 2001). The profits from the goods that they sell are also part of the benefit that they make. The methods in both cases are appropriate except that of Staple where it has debts can fail to be paid.

Both Johnson and Johnson use the depreciation accounting  to measure the depreciation. The two companies assign the monetary value to assets and calculate the rate at which the assets depreciate. On the other hand, the two groups also apply the straight-line depreciation. This involves comparing the price of the item at the point it was bought and the present time.

One can improve the service line of Johnson and Johnson as well as that of the Staple Inc through increasing the number of distributors in worldwide. This can be achieved through making few legal formalities involved in the opening and running of their shops.  

Indeed, both the companies have a code of ethics. The staple Inc advocates in delivering quality goods to the customers. The same works in the Johnson’s. On the other hand, the companies have trained personnel and customer services that can lead to the management of the organization.

One would advise a potential business person to invest in Johnson and Johnson as compared to Staple. This is because Johnson has a more significant market as compared to staple based on the high demand for the pharmaceutical products.  

 

References

Stark, J., & Wisconsin. (2001). The Wisconsin state constitution: a reference guide. Westport, Conn. : Greenwood Press.

Wahlen, J. M., Jones, J. P., & Pagach, D. P. (2017). Intermediate accounting: reporting and analysis. Boston, MA: Cengage Learning.

 

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