Pfizer Inc, is a U.S, company that manufactures and distributes pharmaceutical and consumer healthcare products that are similar to those sold by Johnson & Johnson. In the following, we present Johnson & Johnson's profitability ratios computed in Example 5B.1 in the chapter appendix. Use these and the excerpts of Pfizer's income statements to answer the following questions:

a. If Johnson & Johnson's sales are $71,890 million in 2016. which company is larger using sales as a measure of size?

b. Compute Pfizer's profit margin in 2016 and 2015.

c. Compute Pfizer's return on assets in 2016 and 2015.

d. Compute Pfizer's return on equity in 2016 and 2015.

e. Compare Johnson & Johnson's and Pfizer's profit margins in 2016 and 2015.

f. Compare Johnson & Johnson's and Pfizer's return on assets in 2016 and 2015.

g. Compare Johnson & Johnson's and Pfizer's return on equity in 2016 and 2015.

Pfizer Inc (all dollars in millions)

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Balance Sheets (excerpts) End of Year 2016 2015 2014 Total assets $171.615 $167381 $167,566 Total stockholders equity $ 59,544 $64,720 $ 71,301 Statement of Earnings fexcerpts) For the year 2016 2015 2014 Saes to customers $52 824 $48 851 $49,605 Net earnings $7.215 $6 960 $9 135 Johnson & Johuson (from Example SB.1 in Appendix B) Profitability Measure 2016 2015 Profit Margin 23 0% 22.0% Return on Assets 12.0% 11.7% Return on Equity 23.6% 219%