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; confirm that RNOA NOPM NOAT. The median NOPM and NOAT for companies in the packaged food industry (see Exhibit 3.4) is 5% and 2.1, respectively, yielding a median RNOA of 10.5%. Comment on NOPM and NOAT estimates for KFT in comparison to industry medians.

d. Compute net nonoperating obligations (NNO) for 2012 and 2011. Confirm the relation: NOA 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 Krafts use of debt?

P3-44. (LO1,2) Analysis and Interpretation of Profitability Balance sheets and income statements for Kraft Foods Group, Inc, follow. Refer to these financial raFt Foells statements to answer the following requirements. GrOuP,Inc (KFT)