Analysis and Interpretation of Profitability Balance sheets and income statementsfor 3M Company as follows.Consolidated Statements of Income Years ended December 31$ millions 2010 2009 2008 Net sales $26,662 $23,123 $25,269 Operating expenses Cost of sales 13,831 12,109 13,379 Selling, general and administrative expenses 5,479 4,907 5,245 Research, development and related expenses 1,434 1,293 1,404 Loss/(gain) from sale of business 23 Total operating expenses 20,744 18,309 20,051 Operating income 5,918 4,814 5,218 Interest expenses and income Interest expense 201 219 215 Interest income (38) (37) (105) Total interest expense 163 182 110 Income before income taxes 5,755 4,632 5,108 Provision for income taxes 1,592 1,388 1,588 Net income including noncontrolling interest 4,163 3,244 3,520 Less: Net income attributable to noncontrolling interest 78 51 60 Net income $ 4,085 $ 3,193 $ 3,460 Consolidated Balance Sheets ($ millions) 2010 2009 Assets Current Assets Cash and cash equivalents $ 3,377 $ 3,040 Marketable securities-current 1,101 744 Accounts receivable-net 3,615 3,250 Inventories Finished goods 1,476 1,255 Work in process 950 815 Raw materials and supplies 729 569 Total inventories 3,155 2,639 Other current assets 967 1,122 Total current assets 12,215 10,795 Marketable securities-noncurrent 540 825 Investments 146 103 Property, plant and equipment 20,253 19,440 Less: Accumulated de-preciation (12,974) (12,440) Property, plant & equipment-net 7,279 7,000 Goodwill 6,820 5,832 Intangible assets-net 1,820 1,342 Prepaid pension benefits 74 78 Other assets 1,262 1,275 Total assets $ 30,156 $ 27,250 Liabilities Current liabilities Short-term borrowings and current portion of long-term debt $ 1,269 $ 613 Accounts payable 1,662 1,453 Accrued payroll 778 680 Accrued income taxes 358 252 Other current liabilities 2,022 1,899 Total current liabilities 6,089 4,897 Long-term debt 4,183 5,097 Pension and postretirement benefits 2,013 2,227 Other liabilities 1,854 1,727 Total liabilities 14,139 13,948 Equity 3M Company shareholders' equity: Common stock, par value $.01 per share; 9 9 Additional paid-in capital 3,468 3,153 Retained earnings 25,995 23,753 Treasury stock (10,266) (10,397) Accumulated other comprehensive income (loss) (3,543) (3,754) Total 3M Company shareholders' equity 15,663 12,764 Noncontrolling interest 354 538 Total equity 16,017 13,302 Total liabilities and equity $ 30,156 $ 27,250

(a) Compute net operating profit after tax (NOPAT) for 2010. Assume that the combined federal and statutory rate is: 37.0% (Round to the nearest whole number.) 2010 NOPAT =( ) $ millions

(b) Compute net operating assets (NOA) for 2010 and 2009. Treat noncurrent Investments as a nonoperating item. 2010 NOA = ( ) $ millions 2009 NOA = ( )$ millions

(c) Compute 3M's RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2010. (Round your to two decimal places. Do not round until your final answer. Do not use NOPM x NOAT to calculate RNOA.) 2010 RNOA =( ) % 2010 NOPM = ( ) % 2010 NOAT =

(d) Compute net nonoperating obligations (NNO) for 2010 and 2009. 2010 NNO = ( )$ millions 2009 NNO = ( )$ millions

(e) Compute return on equity (ROE) for 2010. (Round to two decimal places. Do not round until your final. 2010 ROE = %

(f) What is the nonoperating return component of ROE for 2010? (Round to two decimal places.) 2010 nonoperating return = %