Comparative financial statements for Johnson & Johnson for the years ended December 31, 2023, 2022, and 2021 are given below.

Johnson & Johnson Comparative Income Statements	2023	2022	2021
Sales	$750,000,000	$700,000,000	$650,000,000
Cost of goods sold	$450,000,000	$420,000,000	$390,000,000
Gross profit	$300,000,000	$280,000,000	$260,000,000
Operating expenses	$150,000,000	$140,000,000	$130,000,000
Income from operations	$150,000,000	$140,000,000	$130,000,000
Interest expense	$15,000,000	$14,000,000	$13,000,000
Income before taxes	$135,000,000	$126,000,000	$117,000,000
Income tax expense	$40,500,000	$37,800,000	$35,100,000
Net income	$94,500,000	$88,200,000	$81,900,000

Johnson & Johnson Comparative Balance Sheets	2023	2022	2021
Assets
Current assets	$150,000,000	$140,000,000	$130,000,000
Long-term investments	$200,000,000	$190,000,000	$180,000,000
Property and equipment, net	$300,000,000	$280,000,000	$260,000,000
Total assets	$650,000,000	$610,000,000	$570,000,000
Liabilities and Equity
Current liabilities	$130,000,000	$120,000,000	$110,000,000
Long-term debt	$250,000,000	$230,000,000	$210,000,000
Common stock	$130,000,000	$130,000,000	$130,000,000
Retained earnings	$140,000,000	$130,000,000	$120,000,000
Total liabilities and equity	$650,000,000	$610,000,000	$570,000,000

Requirements:

1. Prepare common-size income statements for 2023, 2022, and 2021.
2. Prepare common-size balance sheets for 2023, 2022, and 2021.
3. Calculate Johnson & Johnson’s gross profit margin and net profit margin for the three years.
4. Discuss the trend in Johnson & Johnson’s retained earnings over the three years.