Covidien plc is an Irish company that manufactures and distributes pharmaceutical and medical device products that are similar to those sold by Johnson Johnson. Use the excerpts of Johnson Johnson and Covidien'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. The captions for some lines have been changed for consistency in comparing the two companies. Sources: http: //files.shareholder.com/downloads/JNJ/2719746024x0x733042/DDD2ABDS-2CC6-41D2-8ACB-EC2A967727EA/ar2013_JNJ.pdf http: //investor.covidien.com/phoenix.zhtml?c=207592&p=irol-reportsannual