Following are the income statement and balance sheet for Cisco Systems for the year ended July 30, 2016. Cisco Systems Inc. Consolidated Statements of Income Years Ended December ($ millions) July 30, 2016 July 25, 2015 Revenue Product $37,254 $37,750 Service 11,993 11,411 Total revenue 49,247 49,161 Cost of sales Product 14,161 15,377 Service 4,126 4,103 Total cost of sales 18,287 19,480 Gross margin 30,960 29,681 Operating expenses Research and development 6,296 6,207 Sales and marketing 9,619 9,821 General and administrative 1,814 2,040 Amortization of purchased intangible assets 303 359 Restructuring and other charges 268 484 Total operating expenses 18,300 18,911 Operating income 12,660 10,770 Interest income 1,005 769 Interest expense (676) (566) Other income (loss), net (69) 228 Interest and other income (loss), net 260 431 Income before provision for income taxes 12,920 11,201 Provision for income taxes 2,181 2,220 Net income $10,739 $8,981

Cisco shareholders' equity Preferred stock, no par value: 5 shares authorized; none issued and outstanding -- -- Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 5,029 and 5,085 shares issued and outstanding at July 30, 2016 and July 25, 2015, respectively 44,516 43,592 Retained earnings 19,396 16,045 Accumulated other comprehensive income (loss) (326) 61 Total Cisco shareholders' equity 63,586 59,698 Noncontrolling interests (1) 9 Total equity 63,585 59,707 Total liabilities and equity $121,652 $113,373

(a) compute the return on assets (ROA) and return on equity (ROE) for 2016

(b) Complete the DuPont disaggregation of return on equity (ROE) for 2016. Analyze the DuPont financial ratios and discuss how Cisco Systems Inc. can achieve a high ROE.

(c) Compute net operating assets (NOA) for 2016. Note, for the balance sheet items of Cisco Systems, non-operating assets include cash and cash equivalents, and investments. Nonoperating liabilities include short-term debt and long-term debt