Analysis and Interpretation of Profitability (d) Compute net nonoperating obligations (NNO) for 2016 and 2015. 2016NNO=2015NNO=($millions)($millions) (e) Compute return on equity (ROE) for 2016. (Do not round until final answer. Round answer two decimal places) 2016ROE=% (f) Infer the nonoperating return component of ROE for 2016. (Use answers from above to calculate. Round two decimal places.) % (g) What does the relation between ROE and RNOA suggest about Costco's use of equity capital? ROE > RNOA implies that Costco's equity has grown faster than its NOA. ROE > RNOA implies that Costco has taken on too much financial leverage. ROE > RNOA implies that Costco is able to borrow money to fund operating assets that yield a return greater than its cost of debt. ROE > RNOA implies that Costco increased its financial leverage during the period. Please answer all parts of the question. Costco Wholesale Corporation Consolidated Balance Sheets (\$ millions, except par value and share data) \begin{tabular}{cc} August & August \\ 28, & 30, \\ 2016 & 2015 \\ \hline \end{tabular} Assets Current assets Cash and cash equivalents Short-term investments Receivables, net Merchandise inventories Deferred income taxes and other current assets Total current assets Property and equipment Land Buildings and improvements Equipment and fixtures Construction in progress Gross property and equipment Less accumulated depreciation and amortization Net property and equipment Other assets Total assets Liabilities and equity Current liabilities Accounts payable Current portion long-term debt Accrued salaries and benefits Accrued member rewards Deferred membership fees Other current liabilities Total current liabilities Long-term debt, excluding current portion Other liabilities Total liabilities Equity Preferred stock, $0.005 par value: 100,000,000 shares authorized; no shares issued and outstanding Common stock, $0.005 par value: 900,000,000 shares authorized; 437,524,000 and 437,952,000 shares issued and outstanding Additional paid-in-capital Accumulated other comprehensive loss Retained earnings Total Costco stockholders' equity Noncontrolling interests Total equity Total liabilities and equity