Direct Computation of Nonoperating Return 3M COMPANY Consolidated Balance Sheets At December 31 (\$ millions, except per share amount) 20182017 Current Assets \begin{tabular}{|l|r|r|} \hline Cash and cash equivalents & $6,219 & $3,053 \\ \hline Marketable securities & 380 & 1,076 \\ \hline Accounts receivable & 5,020 & 8,277 \\ \hline Total inventories & 4,366 & 4,034 \\ \hline Prepaids & 741 & 937 \\ \hline Other current assets & 349 & 266 \\ \hline Total current assets & 17,075 & 17,643 \\ \hline Property, plant and equipment-net & 8,738 & 8,866 \\ \hline Goodwill & 10,051 & 10,513 \\ \hline Intangible assets-net & 2,657 & 2,936 \\ \hline Other assets & 1,345 & 1,395 \\ \hline Total assets & $39,866 & $41,353 \\ \hline \hline Current liabilities & & \\ \hline Short-term borrowings and current portion of long-term debt & $1,211 & $1,853 \\ \hline Accounts payable & 5,632 & 5,311 \\ \hline Accrued payroll & 749 & 870 \\ \hline Accrued income taxes & 28,14% & \\ \hline Other current liabilities & 28,11% & \\ \hline Total current liabilities & 210 \\ \hline Long-term debt & 2,775 & 2,709 \\ \hline Pension and postretirement benefits & 10,610 & 11,053 \\ \hline Other liabilities & 16,777 & 15,462 \\ \hline Total liabilities & 2,987 & 3,620 \\ \hline 3M Company shareholders' equity & 3,866 & $41,353 \\ \hline Common stock, par value & 3,010 & 2,962 \\ \hline Additional paid-in capital & 29,626) & (25,887) \\ \hline Retained earnings & (6,866) & (7,026) \\ \hline Treasury stock & 6,430 & 8,197 \\ \hline Accumulated other comprehensive income (loss) federal and state statutory tax rate & 52 & 59 \\ \hline Total 3M Company shareholders' equity & 33,384 & 33,097 \\ \hline Noncontrolling interest & & \\ \hline Total equity & 9 & 9 \\ \hline & 2,986 \\ \hline \end{tabular} b. Compute net nonoperating obligations (NNO). c. Compute financial leverage (FLEV). d. Compute NNEP and Spread. e. Compute the noncontrolling interest ratio ( NCI ratio). f. Confirm the relation: ROE=[RNOA+(FLEV Spread )]NCI ratio