Income statements and balance sheets follow for Snap-On Incorporated. Refer to these financial statements to answer the following questions.

a. Compute net operating profit after tax (NOPAT) for 2016 and 2015. Assume that combined federal and state statutory tax rate is 37% for both fiscal years.

b. Compute net operating assets (NOA) for 2016 and 2015.

c. Compute return on net operating assets (RNOA) for 2016 and 2015. Comment on the year-over-year change. Net operating assets are $3,011.7 million in 2014.

d. Disaggregate RNOA into profitability and asset turnover components (NOPM and NOAT, respectively). Remember to include both net sales and financial services revenue in total revenue. What explains the year-over-year change in RNOA?

Snap-On Incorporated Consolidated Statements of Earnings (Amounts in millions) For the fiscal year ended 2016 2015 Net sales $3,430.4 $ 3,352.8 Cost of goods sold (1,720.8) (1,704.5) Gross profit 1,709.6 1,648,3 Operating expenses (1,054.1) (1,053.7) Operating earnings before financial services 655.5 594.6 Financial services revenue 281.4 240.3 Financial services expenses (82.7) (70.1) Operating income from financial services 198.7 170.2 Operating earnings 854.2 764.8 Interest expense (52.2) (51.9) Other income (expense) - net (0.6) (2.4) Earnings before income taxes and equity carnings 801.4 710.5 Income tax expense (244.3) (221.2) Earnings before equity earnings 557.1 489.3 Equity earnings, net of tax 2.5 1.3 Net earnings 559.6 490.6 Net earnings attributable to noncontrolling interests (13.2) (11.9) Net earnings attributable to Snap-on incorporated $ 546.4 $ 478.7 Snap-On Incorporated Consolidated Balance Sheets Fiscal Year End (Amounts in millions) 2016 2015