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Analysis and Interpretation of Profitability Consolidated Balance Sheets table [ [ At December 3 1 ( $ millions, except per sh , 2 0
Analysis and Interpretation of Profitability Consolidated Balance Sheets tableAt December $ millions, except per shCurrent AssetsCash and cash equivalents,,$Marketable securitiesAccounts receivable,Total inventories,PrepaidsOther current assets,Total current assets,Property plant and equipmentnet,GoodwillIntangible assetsnet,Other assets,Total assets,ffeebfdbd table$Current liabilitiesShortterm borrowings and current portion of longterm debt,$table$Accounts payable,Accrued payroll,Accrued income taxes,Other current liabilities,Total current liabilities,Longterm debt,Pension and postretirement benefits,Other liabilities,Total liabilities,M Company shareholders' equityCommon stock, par value,Additional paidin capital,Retained earnings,Treasury stock,Accumulated other comprehensive income lossTotal M Company shareholders' equity,Noncontrolling interest,Total equity,Total liabilities and equity,fceaabfcfbfaeaefcc table$$Combined federal and state, a Compute net operating profit after tax NOPAT for Assume that the combined federal and state statutory tax rate is NOPAT $ b Compute net operating assets NOA for and c Compute and disaggregate Ms RNOA into net operating profit margin NOPM and net operating asset turnover NOAT for Demonstrate that RNOA NOPM NOAT. RNOA may be different from first RNOA calculation due to rounding d Compute net nonoperating obligations NNO for and Confirm the relation: NOA NNO Total equity e Compute return on equity ROE for f What is the nonoperating return component of ROE for Please answer all parts of the question. Balance sheets and income statements for M Company follow. tabletableM COMPANYConsolidated Statements of IncomeFor Years ended December $ millionsNet sales,$$Operating expensesCost of sales,Selling general and administrative expenses,Research development and related expenses,Gain on sale of businesses,Total operating expenses,Operating income,Other expense, netIncome before income taxes,Provision for income taxes,Net income including noncontrolling interest,Less: Net income attributable to noncontrolling interest,Net income attributable to M$$Interest expense, gross,$$
Analysis and Interpretation of Profitability Consolidated Balance Sheets
tableAt December $ millions, except per shCurrent AssetsCash and cash equivalents,,$Marketable securitiesAccounts receivable,Total inventories,PrepaidsOther current assets,Total current assets,Property plant and equipmentnet,GoodwillIntangible assetsnet,Other assets,Total assets,ffeebfdbd
table$Current liabilitiesShortterm borrowings and current portion of longterm debt,$table$Accounts payable,Accrued payroll,Accrued income taxes,Other current liabilities,Total current liabilities,Longterm debt,Pension and postretirement benefits,Other liabilities,Total liabilities,M Company shareholders' equityCommon stock, par value,Additional paidin capital,Retained earnings,Treasury stock,Accumulated other comprehensive income lossTotal M Company shareholders' equity,Noncontrolling interest,Total equity,Total liabilities and equity,fceaabfcfbfaeaefcc
table$$Combined federal and state, a Compute net operating profit after tax NOPAT for Assume that the combined federal and state statutory tax rate is
NOPAT
$
b Compute net operating assets NOA for and
c Compute and disaggregate Ms RNOA into net operating profit margin NOPM and net operating asset turnover NOAT for Demonstrate that RNOA NOPM NOAT.
RNOA may be different from first RNOA calculation due to rounding
d Compute net nonoperating obligations NNO for and Confirm the relation: NOA NNO Total equity e Compute return on equity ROE for
f What is the nonoperating return component of ROE for
Please answer all parts of the question.
Balance sheets and income statements for M Company follow.
tabletableM COMPANYConsolidated Statements of IncomeFor Years ended December $ millionsNet sales,$$Operating expensesCost of sales,Selling general and administrative expenses,Research development and related expenses,Gain on sale of businesses,Total operating expenses,Operating income,Other expense, netIncome before income taxes,Provision for income taxes,Net income including noncontrolling interest,Less: Net income attributable to noncontrolling interest,Net income attributable to M$$Interest expense, gross,$$
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