Balance sheets and income statements for Intel Corporation follow. Refer to these financial statements to answer the requirements.

Required

a. Compute net operating profit after tax (NOPAT) for 2012. Assume that the combined federal and state statutory tax rate is \(37 \%\).

b. Compute net operating assets (NOA) for 2012 and 2011.

c. Compute RNOA and disaggregate it into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2012. Comment on the drivers of RNOA.

d. Compute net nonoperating obligations (NNO) for 2012 and 2011. Confirm the relation: \(\mathrm{NOA}=\) \(\mathrm{NNO}+\) Stockholders' equity.

e. Compute return on equity (ROE) for 2012.

f. Infer the nonoperating return component of ROE for 2012.
g. Comment on the difference between ROE and RNOA. What does this relation suggest about Intel's use of equity capital?

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INTEL CORPORATION Consolidated Statements of Income For Fiscal Years Ended (in millions) Net revenue.. Cost of sales.. Gross margin Research and development.. Marketing, general and administrative... Amortization of acquisition-related intangibles Operating expenses.. Operating income... Gains (losses) on equity investments, net Interest and other, net Income before taxes Provision for taxes Net income 2012 $53,341 20,190 33,151 10,148 8,057 308 18,513 14,638 141 94 2011 $53,999 20,242 33,757 8,350 7,670 260 16,280 17,477 112 192 14,873 17,781 3,868 4,839 $11,005 $12,942 2010 $43,623 15,132 28,491 6,576 6,309 18 12,903 15,588 348 109 16,045 4,581 $11,464