2018 2017 Question 1 Boston Scientific - Balance Sheet Lecember ( musions/ Current Assets Cash & Equivalents Trade Accounts Receovable net Inventories Prepaid Income Taxes Other Current Assets Total Current Assets 146 1,608 1,166 161 921 4,002 188 1,548 1,078 66 942 3,822 Property, Plant & Equipment Goodwill Other Intangible Assets net Other Long-Term Assets 1,782 7,911 6,372 932 16,997 $20.999 1,697 6,998 5,837 688 15,220 $19,042 Total Assets Current Liabilities Current Debt Obligations Accounts Payable Accrued Expenses Other Current Liabilities Total Current Liabilities 2.253 349 2,246 412 5,260 1,801 530 2,456 867 5,654 Long-Term Debt Deferred Income Taxes Other Long-Term Liabilities 4,803 328 1,882 7,013 3,815 191 2,370 6,376 Toltal Liabilities 12,273 12,030 Shareholders' Equity Common Stook Treasury Stock at cost Additional Paid-in Capital Accumulative Deficit Other Comprehensive Income Total Stockholders' Equity Total Liabilities & Equity 16 (1.717) 17,346 (6,953) 34 8,726 $20.999 16 (1.717) 17,161 (8,390) (58) 7,012 $19.012 Highlight the operating assets and operating liabilities in the above balance sheet Compute the Net Operating Assets (NOA) in the table below 2018 2017 Net Operating Assets ( 4 millions) Operating Assets Operating Liabilities Net Operating Assets (NOA) Compute the Net Nonoperating Obligations (NNO) in the table below 2018 2017 Net Nonoperating Obligations ( 4 millions) Nonoperating Liabilities Less Nonoperating Assets Net Nonoperating Obligations (NNO) Boston Scientific - Income Statement December 31 mwins/ 2018 2017 Net Sales Cost of Products Sold Gross Profit 9,823 2,813 7,010 9,048 2,593 6,455 Operating Expenses Selling, General & Administrative Research & Development Rpyalty Expense Amortization Expense Intangible Asset Impairment Charge Contingent Consideration Expense Restructuring Charge Litigation-related Charge 3,569 1,113 70 599 35 (21) 36 103 5,504 3,294 997 68 565 4 (80) 37 285 5,170 1,506 1,285 Operating Income Other Expenses/(Income) Interest Expense Other Expense (Income) net 241 (157) 84 229 124 353 Income before Taxes Income Tax Expensel(Benefit) 1.422 (249) 932 828 Net Income $1,671 $104 Highlight the operating activities in the above income statement Compute the Net Operating Profit after Tax (NOPAT) in the table below 2018 Net Operating Profit after Tax (NOPAT) Net Operating Profit before Tax (NOPBT) Less Tax on Operating Profit: Pretax net nonoperating expense Statutory tax rate Tax shield Tax Expense (Benefit) Tax on operating Profit 222 Net Operating Profit after Tax (NOPAT) Provide the Income Statement and Balance Sheet amounts, and compute the ratios in the table below DuPont Approach Operating Approach DuPont vs Operating Focus for 2018 Net Income.... Net Operating Profit after Tax (NOPAT) Average Assets...... Average Net Operating Assets. ROA... RNOA... ROE.... ROAIROE... RNOAROE.. Compare the ROA/ROE ratio computed under the "DuPont approach" to the RNOA/ROE ratio computed under the "Operating approach" Which approach shows a greater portion of the ROE attributed to operating activities? 2018 2017 Question 1 Boston Scientific - Balance Sheet Lecember ( musions/ Current Assets Cash & Equivalents Trade Accounts Receovable net Inventories Prepaid Income Taxes Other Current Assets Total Current Assets 146 1,608 1,166 161 921 4,002 188 1,548 1,078 66 942 3,822 Property, Plant & Equipment Goodwill Other Intangible Assets net Other Long-Term Assets 1,782 7,911 6,372 932 16,997 $20.999 1,697 6,998 5,837 688 15,220 $19,042 Total Assets Current Liabilities Current Debt Obligations Accounts Payable Accrued Expenses Other Current Liabilities Total Current Liabilities 2.253 349 2,246 412 5,260 1,801 530 2,456 867 5,654 Long-Term Debt Deferred Income Taxes Other Long-Term Liabilities 4,803 328 1,882 7,013 3,815 191 2,370 6,376 Toltal Liabilities 12,273 12,030 Shareholders' Equity Common Stook Treasury Stock at cost Additional Paid-in Capital Accumulative Deficit Other Comprehensive Income Total Stockholders' Equity Total Liabilities & Equity 16 (1.717) 17,346 (6,953) 34 8,726 $20.999 16 (1.717) 17,161 (8,390) (58) 7,012 $19.012 Highlight the operating assets and operating liabilities in the above balance sheet Compute the Net Operating Assets (NOA) in the table below 2018 2017 Net Operating Assets ( 4 millions) Operating Assets Operating Liabilities Net Operating Assets (NOA) Compute the Net Nonoperating Obligations (NNO) in the table below 2018 2017 Net Nonoperating Obligations ( 4 millions) Nonoperating Liabilities Less Nonoperating Assets Net Nonoperating Obligations (NNO) Boston Scientific - Income Statement December 31 mwins/ 2018 2017 Net Sales Cost of Products Sold Gross Profit 9,823 2,813 7,010 9,048 2,593 6,455 Operating Expenses Selling, General & Administrative Research & Development Rpyalty Expense Amortization Expense Intangible Asset Impairment Charge Contingent Consideration Expense Restructuring Charge Litigation-related Charge 3,569 1,113 70 599 35 (21) 36 103 5,504 3,294 997 68 565 4 (80) 37 285 5,170 1,506 1,285 Operating Income Other Expenses/(Income) Interest Expense Other Expense (Income) net 241 (157) 84 229 124 353 Income before Taxes Income Tax Expensel(Benefit) 1.422 (249) 932 828 Net Income $1,671 $104 Highlight the operating activities in the above income statement Compute the Net Operating Profit after Tax (NOPAT) in the table below 2018 Net Operating Profit after Tax (NOPAT) Net Operating Profit before Tax (NOPBT) Less Tax on Operating Profit: Pretax net nonoperating expense Statutory tax rate Tax shield Tax Expense (Benefit) Tax on operating Profit 222 Net Operating Profit after Tax (NOPAT) Provide the Income Statement and Balance Sheet amounts, and compute the ratios in the table below DuPont Approach Operating Approach DuPont vs Operating Focus for 2018 Net Income.... Net Operating Profit after Tax (NOPAT) Average Assets...... Average Net Operating Assets. ROA... RNOA... ROE.... ROAIROE... RNOAROE.. Compare the ROA/ROE ratio computed under the "DuPont approach" to the RNOA/ROE ratio computed under the "Operating approach" Which approach shows a greater portion of the ROE attributed to operating activities