Merck & Co., Incorporated, is a global health-care company that offers prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. The annual report for the year ended December 31, 2011, included the data (slightly modified) shown next ($ in millions). Unless otherwise specified, the balance sheet  amounts are the balances as of December 31, 2011.

1. Prepare a combined multiple-step statement of income.
2. Prepare a classified balance sheet.  Include the correct number for retained earnings.
3. The average common stockholders' equity for the year was $56,874 million. What was the percentage of net income to average common stockholders' equity?
4. The average total assets for the year were $105,454.5 million. What was the percentage of net income to average total assets?
5. Compute
(a) Gross profit percentage,
(b) Percentage of net income to sales.

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Sales Cash dividends declared Inventories Paid-in capitai Other current assets Retained earnings $15,525 13,531 9,731 1,441 942 16,297 52,192 $48,047 Logterm debt 4,818 6,254 17,953 3,694 Cash and cash equivalents Accrued liabilities Short term investments Taxes on income Property and equipment, net Other noncurrent assets Marketing and administrative December 31, 2010 37,536 ? December 31, 2011 Trade accounts payable Other expenses, net Cost of sales Other current liabilities Long term investments Interest expense, net 2,462 expense 13,733 R1 Research and development 816 16,871 3,271 3,458 expense Other noncurrent liabilities Income taxes payable Accounts receivable 8,467 16,415 781 8,261 946