Balance sheets and income statements for $3$M Company follow.

$3$M COMPANY

Consolidated Statements of Income

For Years ended December $31($$ millions$)20182017$

Net sales $$19,823$ $$19,152$

Operating expenses

Cost of sales $10,0939,713$

Selling, general and administrative expenses $4,5994,009$

Research, development and related expenses $1,8211,870$

Gain on sale of businesses $(547)(586)$

Total operating expenses $15,96615,006$

Operating income $3,8574,146$

Other expense, net$*12587$

Income before income taxes $3,7324,059$

Provision for income taxes $9901,621$

Net income including noncontrolling interest $2,7422,438$

Less: Net income attributable to noncontrolling interest $1411$

Net income attributable to $3$M $$2,728$ $$2,427$

$*$Interest expense, gross $$350$ $$322$

$3$M COMPANY

Consolidated Balance Sheets

At December $31($$ millions, except per share amount$)20182017$

Current Assets

Cash and cash equivalents $$1,726$ $$1,847$

Marketable securities $3801,076$

Accounts receivable $3,0372,971$

Total inventories $2,6412,441$

Prepaids $741937$

Other current assets $349266$

Total current assets $8,8749,538$

Property, plant and equipment$-$net $5,2865,364$

Goodwill $6,0816,360$

Intangible assets$-$net $1,6071,776$

Other assets $1,3451,395$

Total assets $$23,193$ $$24,433$

Current liabilities

Short$-$term borrowings and current portion of long$-$term debt $$733$ $$1,121$

Accounts payable $1,3711,177$

Accrued payroll $749870$

Accrued income taxes $243310$

Other current liabilities $1,6791,639$

Total current liabilities $4,7755,117$

Long$-$term debt $8,1147,318$

Pension and postretirement benefits $1,8072,190$

Other liabilities $3,0102,962$

Total liabilities $17,70617,587$

$3$M Company shareholders' equity

Common stock, par value $99$

Additional paid$-$in capital $2,9193,026$

Retained earnings $24,58523,665$

Treasury stock $(17,924)(15,662)$

Accumulated other comprehensive income $($loss$)(4,154)(4,251)$

Total $3$M Company shareholders' equity $5,4356,787$

Noncontrolling interest $5259$

Total equity $5,4876,846$

Total liabilities and equity $$23,193$ $$24,433$

Combined federal and state statutory tax rate $22\%$

a$.$ Compute net operating profit after tax $($NOPAT$)$ for $2018.$ Assume that the combined federal and state statutory tax rate is $22\%.$

c$.$ Compute and disaggregate $3$M$$s RNOA into net operating profit margin $($NOPM$)$ and net operating asset turnover $($NOAT$)$ for $2018.$ Demonstrate that RNOA $=$ NOPM $\backslash$times NOAT.

f$.$ What is the nonoperating return component of ROE for $2018?$