Direct Computation of Nonoperating Return Balance sheets and income statements for 3M Company follow.

tables and formulas to follow

AFTER CALCULATIONS TABLE SHOULD HAVE THE FOLLOWING COMPUTATIONS

Direct Computation of Nonoperating Return Balance sheets and income statements for 3M Company follow. \begin{tabular}{|c|c|c|} \hline 3MCOMPANYConsolidatedBalanceSheetsAtDecember31($millions,exceptpershareamount) & 2018 & 2017 \\ \hline \multicolumn{3}{|l|}{ Current Assets } \\ \hline Cash and cash equivalents & $2,853 & $3,053 \\ \hline Marketable securities & 380 & 1,076 \\ \hline Accounts receivable & 5,020 & 4,911 \\ \hline Total inventories & 4,366 & 4,034 \\ \hline Prepaids & 741 & 937 \\ \hline Other current assets & 349 & 266 \\ \hline Total current assets & 13,709 & 14,277 \\ \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 & $36,500 & $37,987 \\ \hline \multicolumn{3}{|l|}{ Current liabilities } \\ \hline Short-term borrowings and current portion of long-term debt & $1,211 & $1,853 \\ \hline Accounts payable & 2,266 & 1,945 \\ \hline Accrued payroll & 749 & 870 \\ \hline Accrued income taxes & 243 & 310 \\ \hline Other current liabilities & 2,775 & 2,709 \\ \hline Total current liabilities & 7,244 & 7,687 \\ \hline Long-term debt & 13,411 & 12,096 \\ \hline Pension and postretirement benefits & 2,987 & 3,620 \\ \hline Other liabilities & 3,010 & 2,962 \\ \hline Total liabilities & 26,652 & 26,365 \\ \hline \multicolumn{3}{|l|}{ 3M Company shareholders' equity } \\ \hline Common stock, par value & 9 & 9 \\ \hline Additional paid-in capital & 5,643 & 5,352 \\ \hline Retained earnings & 40,636 & 39,115 \\ \hline Treasury stock & (29,626) & (25,887) \\ \hline Accumulated other comprehensive income (loss) & (6,866) & (7,026) \\ \hline Total 3M Company shareholders' equity & 9,796 & 11,563 \\ \hline Noncontrolling interest & 52 & 59 \\ \hline Total equity & 9,848 & 11,622 \\ \hline Total liabilities and equity & $36,500 & $37,987 \\ \hline Combined federal and state statutory tax rate & 22.00% & \\ \hline ROE & 50.09% & \\ \hline RNOA & 25.89% & \\ \hline \end{tabular} Financial Reperting and Analysis a. Compute net nonoperating expense (NNE) and net operating profit (NOPAT). Assume tax vate is 22% NNE= Net nonoperating profit and tax (NOPAT) consolidated net income/ Net income including noncontrolling interest NNE=55245363=161NNE=161NOPAT=5524 b. Compute net nonoperating expense obligations otherwise known as (Nnv) 2018: \$11.389 2017:$9,820 Formula: NNO nonoperating obligations noniperating assets. c. Compute financial leverage (FLEV) Jormula: Avg. NNO Avg. Total stockhoiders equity FLEV=29,848+11,622211,389+9,820FLEV=0.992 d. Compute NNEP and Spread NNEP=Avg.NNONNE(given) NNEP=11,23899,820161100=1.52% Spread=RNOA-NNEP(given)Spread=25.89%1.58%Spread=0.25890.018.Spread=0.241or24.11% e. Compute the noncontroiling interest rate / ratio NCIratio=netincomenetincome(companyshareholders)netincomeArg-equity(companysharehoiders)Avg-totalequity29,848+11,62210,735denominatorNClratio=1.00 f. Confirm the relation: RUE = [RNOA + (FLEV SPREAD ) Na ratio ROE may be different due to rounding b. Compute net nonoperating obligations (NNO). c. Compute financial leverage (FLEV). d. Compute NNEP and Spread. e. Compute the noncontrolling interest ratio ( NCl ratio). f. Confirm the relation: ROE=[RNOA+( FLEV Spread )] ROE may be different due to rounding Direct Computation of Nonoperating Return Balance sheets and income statements for 3M Company follow. \begin{tabular}{|c|c|c|} \hline 3MCOMPANYConsolidatedBalanceSheetsAtDecember31($millions,exceptpershareamount) & 2018 & 2017 \\ \hline \multicolumn{3}{|l|}{ Current Assets } \\ \hline Cash and cash equivalents & $2,853 & $3,053 \\ \hline Marketable securities & 380 & 1,076 \\ \hline Accounts receivable & 5,020 & 4,911 \\ \hline Total inventories & 4,366 & 4,034 \\ \hline Prepaids & 741 & 937 \\ \hline Other current assets & 349 & 266 \\ \hline Total current assets & 13,709 & 14,277 \\ \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 & $36,500 & $37,987 \\ \hline \multicolumn{3}{|l|}{ Current liabilities } \\ \hline Short-term borrowings and current portion of long-term debt & $1,211 & $1,853 \\ \hline Accounts payable & 2,266 & 1,945 \\ \hline Accrued payroll & 749 & 870 \\ \hline Accrued income taxes & 243 & 310 \\ \hline Other current liabilities & 2,775 & 2,709 \\ \hline Total current liabilities & 7,244 & 7,687 \\ \hline Long-term debt & 13,411 & 12,096 \\ \hline Pension and postretirement benefits & 2,987 & 3,620 \\ \hline Other liabilities & 3,010 & 2,962 \\ \hline Total liabilities & 26,652 & 26,365 \\ \hline \multicolumn{3}{|l|}{ 3M Company shareholders' equity } \\ \hline Common stock, par value & 9 & 9 \\ \hline Additional paid-in capital & 5,643 & 5,352 \\ \hline Retained earnings & 40,636 & 39,115 \\ \hline Treasury stock & (29,626) & (25,887) \\ \hline Accumulated other comprehensive income (loss) & (6,866) & (7,026) \\ \hline Total 3M Company shareholders' equity & 9,796 & 11,563 \\ \hline Noncontrolling interest & 52 & 59 \\ \hline Total equity & 9,848 & 11,622 \\ \hline Total liabilities and equity & $36,500 & $37,987 \\ \hline Combined federal and state statutory tax rate & 22.00% & \\ \hline ROE & 50.09% & \\ \hline RNOA & 25.89% & \\ \hline \end{tabular} Financial Reperting and Analysis a. Compute net nonoperating expense (NNE) and net operating profit (NOPAT). Assume tax vate is 22% NNE= Net nonoperating profit and tax (NOPAT) consolidated net income/ Net income including noncontrolling interest NNE=55245363=161NNE=161NOPAT=5524 b. Compute net nonoperating expense obligations otherwise known as (Nnv) 2018: \$11.389 2017:$9,820 Formula: NNO nonoperating obligations noniperating assets. c. Compute financial leverage (FLEV) Jormula: Avg. NNO Avg. Total stockhoiders equity FLEV=29,848+11,622211,389+9,820FLEV=0.992 d. Compute NNEP and Spread NNEP=Avg.NNONNE(given) NNEP=11,23899,820161100=1.52% Spread=RNOA-NNEP(given)Spread=25.89%1.58%Spread=0.25890.018.Spread=0.241or24.11% e. Compute the noncontroiling interest rate / ratio NCIratio=netincomenetincome(companyshareholders)netincomeArg-equity(companysharehoiders)Avg-totalequity29,848+11,62210,735denominatorNClratio=1.00 f. Confirm the relation: RUE = [RNOA + (FLEV SPREAD ) Na ratio ROE may be different due to rounding b. Compute net nonoperating obligations (NNO). c. Compute financial leverage (FLEV). d. Compute NNEP and Spread. e. Compute the noncontrolling interest ratio ( NCl ratio). f. Confirm the relation: ROE=[RNOA+( FLEV Spread )] ROE may be different due to rounding