Merck Novartis

Merck and Novartis Financial Statements 2012

Balance Sheet

• What components of stockholders' equity do each of the companies disclose?

Merck & Co. provides a consolidated statement of stockholders equity on their balance sheet. They disclose the number of shares, share types, retained earnings, and some historical data (Merck & Co., 2013).

Novartis provides a much more thorough and detailed report of their shareholders equity in their annual report. Not only do they report all of the same accounts as Merck, but they also provide a detailed analysis of the movements in shareholders' equity as well as many of the motivations that are responsible for changes (Novartis, 2013)

• Do the companies have preferred stock shares outstanding? If so, what special features do these shares contain?

Both companies have preferred stock. Preferred stock accounts are paid before the common stock accounts. They are given priority when there is...
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