Balance sheets and income statements for 3M Company follow. 3M COMPANY Consolidated Statements of Income For Years Ended December 31 ($ millions) 2018 2017 Net sales......... .. $32.765 $31.657 Operating expenses Cost of sales. . .. .. . . . 16.682 16,055 Selling, general and administrative expenses.. . . . . . . . . ..Ill 7.602 6.626 Research, development and related expenses... .. .. . .ll 1,821 1,870 Gain on sale of businesses. .... ..... (547) (586) Total operating expenses.... ... . . ..! 25.558 23.965 Operating income..... 7.207 7.692 Other expense, . . .1 18 1 1 101 1 18101 1 207 144 Income before income taxes .... . . . 7.000 7.548 Provision for income taxes...... . . .. 1.637 2.679 Net income Induding noncontrolling interest......... .. ..! ! ! 5,353 4,869 Less: Net income attributable to noncontroling interest. . . . . . . . 14 11 Net income attributable to 3M. . $ 5.349 $ 4,858 " Interest expense, gross is $350 million in 2018 and $322 milion in 2017.3M COMPANY Consolidated Balance Sheets At December 31 (5 millions) 2018 2017 Current assets Cash and gash equivalents. ...... . .. 6 2.853 6 3,053 Marketable securities 380 1 076 Accounts receivable . . 5,020 4911 Total inventones . . 4,346 4 034 Propaids .... . ..." 741 937 Other current assets . .. . 349 246 Total current assets 13,709 14.277 Property, plant and equipment, net 8,738 Goodwill . .. 10,051 10.513 Intangible assets-net 2,657 2.936 Other 8390 3... . . . . 1.345 1.385 Total assets . $36,500 $37,987 Current liabilities Short term borrowings and current portion of long-term debt. . $ 1,211 $ 1,853 Accounts payable . .. .. . 2.286 1.945 Accrued payfell..caca 749 870 Accrued income taxes. . 243 310 Other current liabilities. . . . . .. 2,775 2.709 Total current liabilities... ... . . 7,244 7.687 Long-term debt. ... . . . .. 13,411 12 096 Pension and postretirement banes. . . . . . 2.987 3.620 Other liabilities. .... 3,010 2.962 Total Inbilbios. . . ... 26,652 26 365 3M Company shareholders' equity Common stock par value . . . . . . 9 Additional paid in capital. 5,642 5,252 Retained earnings 40.636 39,115 Treasury stock . . (29,6261 (25,847) Accumulated other comprehensive income (loss) . (6.860] (7.0261 Total 3M Company shareholders' equity . ... 9.796 11,583 Noncontrolling interest . . 52 59 Total equity. .... . .. .. .. . . . . 9.848 11 622 Total liabilities and equity . . . .. 5:36,500 537,987 Required d. 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 disaggregate 3M's RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Demonstrate that RNOA = NOPM x NOAT. d, Compute net nonoperating obligations (NNQ) for 2018 and 2017. Confirm the relation: NOA = NNO + Total equity. e. Compute return on equity (ROE) for 2018. F. What is the nonoperating return component of ROE for 2018? e. Comment on the difference between ROE and RNOA. What inference can we draw from this comparison