short answer; No process required ；If the question asks for a dollar amount, you may simply reply with the dollar amount； For each of your responses below, please indicate the exact page number(s) from the annual report
1. Refer to the following three sections of PFIZER’s annual report: (i) Consolidated Statement of Income (also known as the income statement), (ii) the Notes to Consolidated Statements (also known as the “footnotes” to the financial statements), and (iii) Analysis of the Consolidated Statements of Income. 

a) What are the major sources of revenue for the company?

(pg.104)

b) What is the dollar amount of total revenues for 2022?  

$100,330 millions(pg.104)

c) What is the dollar amount of total revenues for 2021? 

$81,288 millions (pg.104)

d) In your own words, what are some of the major reasons behind the change in revenue from the previous year?   
We can see that the explosive growth of the company in the past two years stems from its Comirnaty direct sales and alliance revenues, and Paxlovid. The emergence of the COVID-19 pandemic during these years has given Pfizer a significant profit increase. (pg.104)

2. Refer to PFIZER’s Notes to Consolidated Statements (also known as the “footnotes” to the financial statements). Locate the footnotes containing discussion of PFIZER’s revenue recognition policies.  In your own words, please describe PFIZER’s revenue recognition policy or policies.

3. Does PFIZER prepare its income statement using the cash or accrual basis? What items on the balance sheet or income statement provide clues to answering this question?
By using accrual basis. We can find from the income statement of pg.52,

4. Which audit firm is the auditor for PFIZER?  In your own words, what assurances (if any) does the auditor provide with respect to PFIZER’s annual report?

5. Please answer the following questions related to accounts receivable.

a) What is the dollar amount of accounts receivable for 2022?  

b) What is the dollar amount of accounts receivable for 2021? 

c) In your own words, what are some of the major reasons behind the change in accounts receivable from the previous year?   

6. Please answer the following questions related to the allowance for doubtful accounts.

a) What is the dollar amount for the allowance for doubtful accounts for the year ended December 31, 2022? How does it compare to 2021?  

b) Which financial statement(s) provide the dollar amount for the allowance for doubtful accounts?  

c) In your own words, what does the allowance for doubtful accounts represent?  

d) In your own words, please explain why the allowance could increase or decrease from one year to the next year.

e) In your own words, please describe how PFIZER determines the dollar amount to record in the allowance for doubtful accounts.

7. Answer the following questions related to inventory.

a) Inventory is generally considered a “current” asset.  Why?

b) Which inventory method does PFIZER use?  For example, LIFO, FIFO, average cost, or specific identification.  In your own words, please provide an explanation of how the inventory method chosen by PFIZER works.

c) In your own words, please explain how inventory and cost of goods sold are related.

d) What is the dollar amount for gross profit for 2022?  In your own words, what does gross profit represent?  How would gross profit be different if PFIZER used a different inventory method (for example, higher or lower or stays the same)?

8. Please answer the following questions related to property, plant, and equipment (PPE).

a) What depreciation method(s) does PFIZER use?  In your own words, please describe PFIZER’s depreciation method(s) (i.e., how the depreciation expense number is computed using the method).

b) What is the estimated useful life used by PFIZER for depreciating its PPE?  If the company uses different useful life estimates for different categories of PPE, please identify all the major categories of PPE and indicate the useful life estimate for each category.  Do you believe these estimates are reasonable?  Why or why not?

c) What is the dollar amount of accumulated depreciation in 2022?  What type of account is accumulated depreciation (i.e., asset, liability, owners’ equity, revenue, or expense, etc.)?  In your own words, what does “accumulated depreciation” mean?  Does the dollar amount of accumulated depreciation in 2022 include only depreciation related to assets that PFIZER acquired during 2022?

d) How much depreciation expense did PFIZER report for the 2022 fiscal year?  Which financial statement(s) provide this dollar amount?  In your own words, what is the relationship between depreciation expense and accumulated depreciation?

9. What types of intangible assets does PFIZER have? Briefly describe each type that PFIZER has.

10. Does PFIZER provide any proforma (i.e., non-GAAP) earnings numbers in the annual report?  What are the major adjustments that the company makes to reported GAAP income to compute the proforma earnings number?

11. Using total revenues as the common deflator, prepare a common size income statement for each year: 2020, 2021, and 2022.  Provide analysis and discussion of noteworthy patterns and trends.