HEALTH CARE

Abbott Laboratories and Subsidiaries*

CONSOLIDATED BALANCE SHEET (IN PART)
(Dollars in thousands)

Liabilities and Shareholders’ Investment

31 Dec

   

Current Liabilities:

2008

2007

2006

Short term borrowings

$1,691,069

$1,827,361

$5,305,985

Trade accounts payable

1,351,436

1,219,529

1,175,590

Salaries, wages, and commissions

1,011,312

859,784

807,283

Other accrued liabilities

4,216,742

3,713,104

3,850,723

Dividends payable

559,064

504,540

453,994

Income taxes payable

805,397

80,406

262,344

Obligation in connection with conclusion of TAP

     

Pharmaceutical Products, Inc. joint venture

915,982

Current portion of long term debt

1,040,906

898,554

95,276

Total Current Liabilities

11,591,908

9,103,278

11,951,195

Long term Debt

8,713,327

9,487,789

7,009,664

Postemployment Obligations and Other Long term Liabilities

4,634,418

3,344,317

3,163,127

Commitments and Contingencies

     

Shareholders’ Investment:

     

Preferred shares, one dollar par value

     

 

 

31 Dec

 

2008

2007

2006

Liabilities and Shareholders’ Investment

     

Authorized—1,000,000 shares, none issued

     

Common shares, without par value

     

Authorized—2,400,000,000 shares

     

Issued at stated capital amount –

     

Shares: 2008: 1,601,580,899; 2007:

     

1,580,854,677; 2006: 1,550,590,438

7,444,411

6,104,102

4,290,929

Common shares held in treasury, at cost –

     

Shares: 2008: 49,147,968; 2007: 30,944,537;

     

2006: 13, 347,272

2,626,404

1,213,134

195,237

Earnings employed in the business

13,825,383

10,805,809

9,568,728

Accumulated other comprehensive income (loss)

1,163,839

2,081,763

389,766

Total Shareholders’ Investment

17,479,551

17,778,540

14,054,186

 

$42,419,204

$39,713,924

$36,178,172

Required

a. 1. The statement is entitled ‘‘Consolidated Balance Sheet.’’ What does it mean to have a consolidated balance sheet?

b. 1. What current liability decreased the most?

2. What current liability increased the most?

c. 1. How many common shares had been issued as of December 31, 2008?

2. How many shares were held in the treasury at December 31, 2008?

3. How many shares were outstanding at December 31, 2008?

4. What is the treasury stock method?

d. 1. Abbott Laboratories discloses the account ‘‘Earnings employed in the business.’’ What is this account usually called?