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Hi Im working on this attached excercise and I need some help... please show me the formulas... Thank you very much Analysis and Interpretation of

Hi Im working on this attached excercise and I need some help... please show me the formulas... Thank you very much

image text in transcribed Analysis and Interpretation of Profitability Balance sheets and income statements for 3M Company follow. Consolidated Statements of Income Years ended December 31 ($ millions) Net sales 2009 2008 2007 $23,123 $25,269 $24,462 Operating expenses Cost of sales 12,109 13,379 12,735 Selling, general and administrative expenses 4,907 5,245 5,015 Research, development and related expenses 1,293 1,404 1,368 -- 23 (849) 18,309 20,051 18,269 4,814 5,218 6,193 219 215 210 (37) (105) (132) 182 110 78 4,632 5,108 6,115 1,388 1,588 1,964 3,244 3,520 4,151 51 60 55 $ 3,193 $ 3,460 $ 4,096 Loss/(gain) from sale of business Total operating expenses Operating income Interest expenses and income Interest expense Interest income Total interest expense Income before income taxes Provision for income taxes Net income including noncontrolling interest Less: Net income attributable to noncontrolling interest Net income Consolidated Balance Sheets ($ millions) 2009 2008 $ 3,040 $ 1,849 744 373 3,250 3,195 1,255 1,505 815 851 569 657 2,639 3,013 Assets Current Assets Cash and cash equivalents Marketable securities-current Accounts receivable-net Inventories Finished goods Work in process Raw materials and supplies Total inventories Consolidated Balance Sheets ($ millions) 2009 2008 1,122 1,168 10,795 9,598 Marketable securities-noncurrent 825 352 Investments 103 111 19,440 18,812 Other current assets Total current assets Property, plant and equipment Less: Accumulated depreciation (12,440) (11,926) Property, plant and equipment-net 7,000 6,886 Goodwill 5,832 5,753 Intangible assets-net 1,342 1,398 78 36 1,275 1,659 Prepaid pension benefits Other assets Total assets $ 27,250 $ 25,793 Liabilities Current liabilities Short-term borrowings and current portion of long-term debt $ 613 $ 1,552 Accounts payable 1,453 1,301 Accrued payroll 680 644 Accrued income taxes 252 350 1,899 1,992 Total current liabilities 4,897 5,839 Long-term debt 5,097 5,166 Pension and postretirement benefits 2,227 2,847 1,727 1,637 13,948 15,489 9 9 3,153 3,006 23,753 22,227 Other current liabilities Other liabilities Total liabilities Equity 3M Company shareholders' equity: Common stock, par value $.01 per share; Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income (loss) Total 3M Company shareholders' equity Noncontrolling interest (10,397) (11,676) (3,754) (3,686) 12,764 9,880 538 424 Consolidated Balance Sheets ($ millions) 2009 13,302 Total equity 2008 10,304 $ 27,250 $ 25,793 Total liabilities and equity (a) Compute net operating profit after tax (NOPAT) for 2009. Assume that the combined federal and statutory rate is: 36.1% (Round your answer to the nearest whole number.) 2009 NOPAT = ($ millions) (b) Compute net nonoperating assets (NOA) for 2009 and 2008. Treat noncurrent Investments as a nonoperating item. 2009 NOA = ($ millions) 2008 NOA = ($ millions) (c) Compute 3M's RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2009. (Round your answers to two decimal places. Do not use NOPM x NOAT to calculate RNOA.) 2009 RNOA = % 2009 NOPM = % 2009 NOAT = % (d) Compute net operating obligations (NNO) for 2009 and 2008. 2009 NNO = 2008 NNO = ($ millions) ($ millions) (e) Compute return on equity (ROE) for 2009. (Round your answers to two decimal places. Do not round until your final answer.) 2009 ROE = % (f) What is the nonoperating return component of ROE for 2009? (Round your answers to two decimal places.) 2009 nonoperating return = % (g) Which of the following statements reflects the best inference we can draw from the difference between 3M's ROE and RNOA? ROE > RNOA implies that 3M has taken on too much financial leverage. ROE > RNOA implies that 3M is able to borrow money to fund operating assets that yield a return greater than its cost of debt. ROE > RNOA implies that 3M's equity has grown faster than its NOA. ROE > RNOA implies that 3M has increased its financial leverage during the period. Please answer all parts of the

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