Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Analysis and Interpretation of Profitability Ralance chooteiand in 3M COMPANY Consolidated Balance Sheets At December 31 ($ millions, except per share amount) 20182017 Current Assets

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Analysis and Interpretation of Profitability Ralance chooteiand in 3M COMPANY Consolidated Balance Sheets At December 31 (\$ millions, except per share amount) 20182017 Current Assets \begin{tabular}{|l|r|r|} \hline Cash and cash equivalents & $2,853 & $3,053 \\ \hline Marketable securities & 380 & 1,076 \\ \hline Accounts receivable & 5,020 & 4,911 \\ \hline Total inventories & 4,366 & 4,034 \\ \hline Prepaids & 741 & 937 \\ \hline Other current assets & 349 & 266 \\ \hline Total current assets & 13,709 & 14,277 \\ \hline Property, plant and equipment-net & 8,738 & 8,866 \\ \hline Goodwill & 10,051 & 10,513 \\ \hline Intangible assets-net & 2,657 & 2,936 \\ \hline Other assets & 1,345 & 1,395 \\ \hline Total assets & $36,500 & $37,987 \\ \hline Current liabilities & & \\ \hline Short-term borrowings and current portion of long-term debt & $1,211 & $1,853 \\ \hline Accounts payable & 2,266 & 1,945 \\ \hline Accrued payroll & 749 & 870 \\ \hline Accrued income taxes & 243 & 310 \\ \hline Other current liabilities & 2,775 & 2,709 \\ \hline Total current liabilities & 7,244 & 7,687 \\ \hline Long-term debt & 13,411 & 12,096 \\ \hline Pension and postretirement benefits & 2,987 & 3,620 \\ \hline Other liabilities & 3,010 & 2,962 \\ \hline \end{tabular} a. Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22% b. Compute net operating assets (NOA) for 2018 and 2017. c. Compute and disopgregate JM's fNOA into net opetating profit margin (NOPM) and net operating asset turnover (NOAT) for 201. Demonstrate that RNOA = NOPM NoAt *kequiob may be different from first ANOA caloulation due to rounding . Compote nec nonoperating obligations (NNO) for 2018 and 2017 , Confirm the teiation, NOA = NWO + Tocal eguity d. Compute net nonoperating obligations (NNO) for 2018 and 2017. Confirm the relation: NOA =NNO+ e. Compute return on equity (ROE) for 2018 . f. What is the nonoperating return component of ROE for 2018

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

=+a. Graph the regression function 220 1 75x 2 4x 2 over

Answered: 1 week ago