3M COMPANY Consolidated Statements of Income For Years ended December 31 ($ millions) 2015 2014 2013 Net sales $30,274 $31,821 $30,871 Operating expenses Cost of sales 15,383 16,447 16,106 Selling, general and administrative expenses 6,182 6,469 6,384 Research, development and related expenses 1,763 1,770 1,715 Total operating expenses 23,328 24,686 24,205 Operating income 6,946 7,135 6,666 Interest expenses and income Interest expense 149 142 145 Interest income (26) (33) (41) Total interest expense--net 123 109 104 Income before income taxes 6,823 7,026 6,562 Provision for income taxes 1,982 2,028 1,841 Net income including noncontrolling interest $4,841 $4,998 $4,721 Less: Net income attributable to noncontrolling interest 8 42 62 Net income attributable to 3M $ 4,833 $4,956 $ 4,659 3M COMPANY Consolidated Balance Sheets At December 31 ($ millions, except per share amount) 2015 2014 Current Assets Cash and cash equivalents $1,798 $1,897 Marketable securities-current 118 1,439 Accounts receivable-net of allowances of $91 and $94 4,154 4,238 Inventories Finished goods 1,655 1,723 Work in process 1,008 1,081 Raw materials and supplies 855 902 Total inventories 3,518 3,706 Other current assets 1,398 1,023 Total current assets 10,986 12,303 Marketable securities-noncurrent 9 15 Investments 117 102 Property, plant and equipment 23,098 22,841 Less: Accumulated depreciation (14,583) (14,352) Property, plant and equipment-net 8,515 8,489 Goodwill 9,249 7,050 Intangible assets-net 2,601 1,435 Prepaid pension benefits 188 46 Other assets 1,053 1.769 Total assets $32.718 $31,209 Liabilities Current liabilities Short-term borrowings and current portion of long-term debt $2,044 $106 332 other assets 10531769 Total assets $32,718 $31,209 Liabilities Current liabilities Short-term borrowings and current portion of long-term debt $2.044 $106 Accounts payable 1,694 1,807 Accrued payroll 644 732 Accrued income taxes 435 Other current liabilities 2,404 2,884 Total current liabilities 7,118 5,964 Long-term debt 8,753 6,705 Pension and postretirement benefits 3,520 3,843 Other liabilities 1,580 1,555 Total liabilities $20,971 $18,067 Equity 3M Company shareholders' equity Common stock, par value $0.01 per share: Shares outstanding 2015: 609,330,124; Shares outstanding-2014: 635,134,594 59 $9 Additional paid.in capital 4,791 4,379 Retained earnings 36,575 34,317 Treasury stock (23,308) (19,307) Accumulated other comprehensive income (loss) (6,359) (6,289) Total 3M Company shareholders' equity 11,708 13,109 Noncontrolling interest 39 33 Total equity $11.747 $13,142 Total liabilities and equity $32,718 531,209 (a) Compute net operating profit after tax (NOPAT) for 2015. Assume that the combined federal and statutory rate is: 37.0% (Round your answer to the nearest whole number 2015 NOPAT X 5 millions) (6) Compute net operating assets (NOA) for 2015 and 2014. Treat noncurrent investments as a nonoperating item 2015 NOA= 5 * 5 millions) 2014 NOA=4 X 5 millions) (Compute 3MS RNOA net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2015. (Round your answers to two decimal places. Do not round until NOPMX NOAT to calculate RNOA) 2015 RNOA 5 X 2015 NOPM5 2015 NOAT 4 x (d) Compute net nonoperating obligations (NNO) for 2015 and 2014 2015 NNO 12 x 5 millions) 2014 NNO 9 x million (e) Compute return on equity (ROE) for 2015. (Round your answers to two decimal places. Do not round until your final answer) 2015 ROE X Compute 3MS RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2015. (Round your answers to two decimal places. Do not round until your fina NOPMX NOAT to calculate RNOA) 2015 RNOA 5 X 2015 NOPM 5 X 2015 NOAT 4 X (0) Compute net nonoperating obligations (NNO) for 2015 and 2014 2015 NNO 12 * 5 millions) 2014 NNOS x millions (e) Compute return on equity (ROE) for 2015. (Round your answers to two decimal places. Do not round until your final answer) 2015 ROE 8 What is the nonoperating return component of ROE for 2017(Round your answers to two decimal places 2015 nonoperating return? X WSROERNOA