a. Compute net nonoperating expenses (NNE) for 2016 and 2015. Assume that combined federal and state statutory tax rate is 37% for both fiscal years

b. Compute net nonoperating obligations (NNO) for 2016 and 2015

Income statements and balance sheets follow for Snap-On Incorporated. Refer to these financial statements to answer the requirements SNAP-ON INCORPORATED Consolidated Statements of Earnings (Amounts in millions) For the fiscal vear ended Net sales Cost of goods sold Gross profit Operating expenses 2016 $3,430.4 (1,720.8 1,709.6 (1,054.1 655.5 2015 $3,352.8 (1.704.5 1,648.3 1,053.7 594.6 before financial services 281.4 82.7 198.7 854.2 (52.2) 0.6 801.4 44.3 557.1 2.5 559.6 13.2 $546.4 240.3 Financial services revenue Financial services expenses Operating income from financial servicesS Operating earning:s Interest expense Other income (expense) - net Earnings before income taxes and equity earnings Income tax expense Earnings berore equity earnings Equity earnings, net of tax Net earnings Net earnings attributable to noncontrolling interests Net earnings attributable to Snap-on Incorporated 170.2 764.8 (51.9) 2.4 710.5 221.2 489.3 490.6 11.9 $478.7 Consolidated Balance SheetS Fiscal Year End 2016 (Amounts in millions) Cash and cash equivalents Trade and other accounts receivable net Finance receivables net Contract receivables net Inventories net Deferred income tax assets Prepaid expenses and other assets Total current assets Property and equipment net Deferred income tax assets Long-term finance receivables net Long-term contract receivables - net Goodwil Other intangibles - net Other assets Total assets 2015 $ 92.8 562.5 447.3 S 77.6 598.8 472.5 497.8 109.9 106.3 1,898.7 116.5 1,884.0 425.2 934.5 286.7 895.5 184.6 106.3 772.7 266.6 790.1 195.0 4,723.2 4.486.9 Notes payable and current maturities of long-term debt Accounts payable Accrued benefits Accrued compensation Franchisee deposits Other accrued liabilities Total current liabilities Long-term debt Deferred income tax liabilities Retiree health care benefits Pension liabilities Other long-term liabilities Total liabilities 170.9 52.8 89.8 64.4 296.3 670.5 861.7 169.8 307.9 989.5 246.5 227.8 2,088.0 S 2,056.2 Preferred stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Treasury stock at cost Total shareholders' equity attributable to Snap-on Inc. Noncontrolling interests Total shareholders' equity Total liabilities and shareholders' equity $67.4 296.3 2,986.9 (364.2) 573 2,412.7 317.3 3,384.9 (498.5) 653.9 2,617.2 2.635.2 S 4,723.2 2430.7 S 4.486.9