Pfizer Inc, is a US company that manufactures and distributes pharmaceutical and consumer healthcare products that are similar to those sold by Johnson & Johnson. Use the excerpts of Johnson & Johnson's and Pfizer's income statements to answer the following questions:

a. Compute each line item as a percentage of sales for both companies.

b. If sales are used as a measure of size, which company is larger?

c. Which company has a higher cost of goods sold relative to sales?

d. Which company has higher selling, general, and administrative expenses relative to sales?

e. Which company has higher research and development expenses relative to sales?

f. Which company has a higher income from continuing operations relative to sales? Comment on the difference or lack of difference given other relationships observed.

g. Which company has a higher profit margin? Comment on the difference between the two companies.

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Johnson & Johnson Pfizer (amounts in millionsl 2016 2016 Net Sales $71,890 $52,824 12,329 Cost of Goods So d 21,685 Gross Prof t 50,205 40,495 Selling, General, and Administrat ve Expenses 19,945 14.837 Research and Development Expenses 9,095 7,872 In-Process Research and Development 29 Amortization of Intang b e Assets 4,056 Restructur ng Charges. Net Interest Expense 491 1,724 726 Interest Income (368) Other Expense ( ncome), Net Incomefrom Continuing Operat ons Before Income Taxes 484 3,655 8,351 19,803 Income Tax Expense Incomefrom Continuing Operatons 3,263 1.123 $ 7.229 $16,540 Income from Discont nued Operat ons, Net of Income Taxes 17 $ 7,246 $16,540 Net Income Belore Noncontrolling Interests Income Attr butable to Noncontrolling Interests 31 $ 16,540 $ 7215 Net Income