Compute and Interpret Measures for DuPont Disaggregation Analysis Balance sheets and income statements for 3M Company follow.

3M Company Consolidated Statements of Income For Years Ended Dec. 31 ($millions) Net sales Operating expenses Cost of sales Selling, general & administrative expenses Research, development & related expenses Total operating expenses Operating income Interest expense and income Interest expense Interest income 2015 2014 2013 $31,051 $31,821 $30,871 15,383 16,447 16,106 6,182 6,469 6,384 1,763 1,7701,715 23,328 24,68624,205 7,7237,135 6,666 149 (26) 123 142 (33) 109 145 (41) 104 Total interest expense -net Income before income taxes Provision for income taxes Net income inc. noncontrolling interest Less: Net income attributable to NCI 7,600 7,0266,562 2,280 2,028 1,841 5,320 4,9984,721 62 $5,312 $4,956 $4,659 42 Net income attributable to 3M 3M Company Consolidated Balance Sheets At December 31 ($ millions, except per share amount) Current assets Cash and cash equivalents Marketable securities--current Accounts receivable, net Inventories: Finished goods Work in process Raw materials and supplies Total inventories Other current assets Total current assets Marketable securities--noncurrent Investments Property, plant and equipment Less: Accumulated depreciation Property, plant and equipment--net Goodwil Intangible assets -net Prepaid pension benefits 2015 2014 $1,996$2,095 220 1,541 4,154 4,238 1,655 1,723 1,008 1,081 902 3,518 3,706 1,398 1,023 11,28612,603 855 102 23,098 22,841 (14,583) (14,352) 8,515 8,489 9,249 7,050 2,6011,435 46 188 Other assets 1,053 1,769 $33,018 $31,509 Total assets Liabilities Current liabilities Short-term debt & current portion of LT debt Accounts payable Accrued payroll Accrued income taxes Other current liabilities Total current liabilities Long-term debt Pension and postretirement benefits Other liabilities Total liabilities Equity 3M Company shareholders' equity: Common stock, par value $0.01 per share; Shares outstanding -2015: 609,330,124; Shares outstanding -2014: 635,134,594 Additional paid-in capital Retained earnings $2,242$208 1,796 2,005 732 435 2,404 2,884 7,418 6,264 8,753 6,705 3,520 3,843 1,580 1,555 21,271 18,367 644 332 4,791 4,379 36,575 34,317 Treasury stock Accumulated other comprehensive income (loss) Total 3M Company shareholders' equity Noncontrolling interest Total equity Total liabilities and equity (23,308) (19,307) (6,359) 6,289) 11,70813,109 39 11,74713,142 $33,018 $31,509 a. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. Then, compute ROA. Round profit margin and ROA to two decimal places (ex: 0.12345-12.35%) Round asset turnover and financial leverage to three decimal places. Profit margin0 Asset turnover0 Financial leverage 0 ROAO b. Compute ROE. Confirm that ROE equals ROE computed using the component measures from part a (ROE PM x AT x FL) Round answer to two decimal places (ex: 0.12345 12.35%) C. Compute adjusted ROA (assume a statutory tax rate of 37% and pretax net interest expense of $123). Round answer to two decimal places (ex: 0.12345-12.35%) 0 % Check