Consider the following income statement and comparative balance sheet.

Income Statement - 3M Company
(in millions)	12/31/2021
Net sales	$35,355.0
Cost of sales	18,795.0
Selling, general & administrative expenses	7,197.0
Gain on business divestitures	0.0
Research, development & other operating expenses	1,994.0
Operating income	7,369.0
Interest income (expense)	(462.0)
Other income (expense)	297.0
Income before income taxes	7,204.0
Provision for income taxes	1,285.0
Add: net income attributable to unconsolidated subsidiaries	10.0
Net income including noncontrolling interest	5,929.0
Less: net income (loss) attributable to noncontrolling interest	(8.0)
Net income attributable to company	$5,921.0

Balance Sheet - 3M Company
(in millions)	12/31/2021	12/31/2020
Assets:
Cash & cash equivalents	$4,564.0	$4,634.0
Short-term marketable securities	201.0	404.0
Accounts receivable, net	4,660.0	4,705.0
Inventories	4,985.0	4,239.0
Prepaid assets	654.0	675.0
Other current assets	339.0	325.0
Total current assets	15,403.0	14,982.0
Property, plant & equipment, net	9,429.0	9,421.0
Operating lease right of use assets	858.0	864.0
Goodwill	13,486.0	13,802.0
Other intangible assets, net	5,288.0	5,835.0
Deferred income tax asset	581.0	871.0
Other long-term assets	2,027.0	1,569.0
Total assets	$47,072.0	$47,344.0
Liabilities:
Current portion of long-term debt & other short-term debt	$1,307.0	$806.0
Accounts payable	2,994.0	2,561.0
Accrued payroll	1,020.0	747.0
Accrued income taxes	260.0	300.0
Operating lease liabilities, current	263.0	256.0
Other current liabilities	3,191.0	3,278.0
Total current liabilities	9,035.0	7,948.0
Long-term debt, less current portion	16,056.0	17,989.0
Pension & postretirement benefits	2,870.0	4,405.0
Operating lease liabilities, long-term	591.0	609.0
Other long-term liabilities	3,403.0	3,462.0
Total liabilities	31,955.0	34,413.0
Stockholders Equity:
Common stock	9.0	9.0
Additional paid-in capital	6,429.0	6,162.0
Retained earnings	45,821.0	43,761.0
Treasury stock, at cost	30,463.0	29,404.0
Accumulated other comprehensive income (loss)	(6,750.0)	(7,661.0)
Total equity to company shareholders	15,046.0	12,867.0
Noncontrolling interest	71.0	64.0
Total equity	15,117.0	12,931.0
Total liabilities and equity	$47,072.0	$47,344.0

Compute the following amounts for year 2021. Enter your responses below. Do not round intermediate calculations. a. Compute return on equity (ROE). [ Select ] ["12.54%", "42.42%", "39.48%", "33.09%", "37.33%"] b. Calculate ROE using the ROA and Financial Leverage (FL) components. (Financial leverage equals average total assets divided by average stockholders equity.)

ROE	=	ROA		FL
[ Select ] ["51.76%", "37.05%", "56.65%", "29.88%", "42.42%"]	=	[ Select ] ["16.75%", "35.60%", "12.54%", "46.84%", "9.78%"]		[ Select ] ["0.30", "2.64", "2.38", "2.95", "3.38"]

c. Calculate ROA using the Profit Margin (PM) and Asset Turnover (AT) components.

ROA	=	PM		AT
[ Select ] ["56.65%", "31.77%", "39.40%", "12.54%", "42.42%"]	=	[ Select ] ["22.11%", "16.75%", "12.54%", "42.42%", "23.78%"]		[ Select ] ["0.99", "0.58", "0.75", "2.53", "1.34"]

d. Confirm the full DuPont formula: ROE = PM AT FL.

ROE	=	PM		AT		FL
[ Select ] ["51.76%", "56.65%", "29.88%", "42.42%", "37.05%"]	=	[ Select ] ["23.78%", "42.42%", "22.11%", "12.54%", "16.75%"]		[ Select ] ["0.99", "0.75", "0.58", "1.34", "2.53"]		[ Select ] ["2.38", "2.64", "3.38", "2.95", "0.30"]