1. Compute Measures for DuPont Disaggregation Analysis Use the information below for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder).

($millions)		2015	2014
Sales		$29,874
Net income, consolidated		4,496
Net income attributable to 3M shareholders		4,488
Assets		32,538	$31,029
Total equity		11,747	13,142
Equity attributable to 3M shareholders		11,708	13,109

a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 = 12.35%) Answer%

b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage.

• Round profit margin to two decimal places (ex: 0.12345 = 12.35%)
• Round asset turnover and financial leverage to three decimal places.

Profit margin Answer% Asset turnover Answer Financial leverage Answer

c. Compute ROA. Round answer to two decimal places (ex: 0.12345 = 12.35%) ROA Answer%

d. Compute adjusted ROA (assume a statutory tax rate of 37% and pretax net interest expense of $123). Round answer to two decimal places (ex: 0.12345 = 12.35%) Answer%

2. Compute NOPAT

The income statement for The TJX Companies, Inc., follows.

THE TJX COMPANIES, INC. Consolidated Statements of Income
Fiscal Year Ended ($ thousands)	January 26, 2008
Net sales	$18,647,126
Cost of sales, including buying and occupancy costs	14,082,448
Selling, general and administrative expenses	3,126,565
Provision (credit) for computer intrusion related costs	197,022
Interest expense (revenue), net	(1,598)
Income from continuing operations before provision for income taxes	1,242,689
Provision for income taxes	470,939
Income from continuing operations	771,750
Gain from discontinued operations, net of income taxes	-
Net income	$ 771,750

Assume that the combined federal and state statutory tax rate is 39.1%.

a. Compute NOPAT using the formula: NOPAT = Net income + NNE.

Round to the nearest whole number.

$Answer

b. Compute NOPAT using the formula: NOPAT = NOPBT Tax on operating profit.

Round to the nearest whole number.

$Answer