I need help finishing the questions below and added to attached document. Report should show computations (including the inputs into each formula), as well as provide a brief explanation of each ratio as done for problems a-e.

f. Compute the return on assets for 2013 and 2014.

g. Compute return on equity (ROE) for 2013 and 2014.

h. What is the nonoperating return component of ROE for 2013 and 2014.

i. Explain the difference between ROE and RNOA. What inference can you draw from this comparison?

j. Compute the current ratio and quick ratio for 2013 and 2014. Comment on any observed trends.

k. Compute times interest earned and liabilities-to-equity ratios for 2013 and 2014. Comment on any changes.

l. Compute net working capital for 2013 and 2014.

m. Compute accounts receivable turnover for 2013 and 2014.

n. Compute inventory turnover for 2013 and 2014.

o. Compute operating cash flow to current liabilities for 2013 and 2014.

p. Compute operating cash flow to capital expenditures for 2013 and 2014.

q. Trend cash from operating, investing, and financing operations. Comment on your findings.

r. Compute EPS and Diluted EPS for 2013 and 2014 ? check your calculation to the reported EPS in the reported financials.

Return on Equity (ROE) ROE = ______Net Income_______ Average Stockholders' equity or ROE = Operating return + Nonoperating return Return on net operating asses (RNOA) RNOA = Net operating profit after tax (NOPAT) Average net operating assets (NOA) 3M ANALYSIS REPORT FOR 2013 AND 2014 3M Company Income Statement For theYear ended December 31 ($ Net Sales Operating Expenses Cost of Sales Selling, general and administrative expenses Research, development and related expenses Total Operating income Interest expense and income Interest expense Interest income Total Income before income taxes, monthlly interest and cumulative effect of accounting change Provision for income taxes Minority interest Income before cumulative effect of accounting change Net Income Op/Nonop $ 2014 31,821 $ 2013 30,871 $ $ $ $ $ 16,447 6,469 1,770 24,686 7,135 $ $ $ $ $ 16,106 6,384 1,715 24,205 6,666 a $ $ $ 142 (33) 109 $ $ $ 145 (41) 104 b $ $ $ 7,026 2,028 42 -4,956 $ $ $ 6,562 1,841 62 $ -$ 4,659 c 3M Balance Sheet Year ended December 31 ($ millions) Assets Cash and cash equivalents Marketable securities - current Accounts receivable - net of allowances of $75 Inventories Finished goods Work in process Raw materials and supplies Total inventories Other current assets Total current assets Marketable securities - noncurrent Investments Property, plant, and equipment 31-Dec-14 $ $ $ 31-Dec-13 1,897 $ 626 $ 4,238### $ 2,581 756 4,253 $ $ $ $ $ $ 1,723### 1,081 902 3,706 1,298 11,765 $ $ $ $ $ $ 1,790 1,139 935 3,864 1,279 12,733 $ $ $ 828 102 22,841 $ $ $ 1,453 122 23,068 Op Op Op d Op Op e Non Non Less: Accumulated depreciation Property, plant, and equipment - net Goodwill Intangible assets - net Prepaid pension and postretirement benefits Other assets Total assets $ $ $ $ $ $ $14,352 8,489 # $ 7,050 $ 1,435 $ 46 $ 1,554 $ 31,269 $ $14,416 8,652 7,345 1,688 577 980 33,550 Liabilities and stockholders' equity Short-term borrowings and current portion of long-term debt Accounts payable Accrued payroll Accrued income taxes Other current liabilities Total current liabilities Long-term debt Pension and post retirement benefits Other liabilities Total liabilities $ $ $ $ $ $ $ $ $ $ 106 1,807 732 435 2,918 5,998 6,731 3,843 1,555 18,127 # $ $ $ $ $ $ $ $ $ $ 1,683 1,799 708 417 2,891 7,498 4,326 1,794 1,984 15,602 $ $ $ 9 $ 4,379 $ 34,317 $ ($19,307) ($6,289) 13,109 $ 33 $ 13,142 # $ 31,269 # $ 9 4,375 32,416 ($15,385) ($3,913) 17,502 446 17,948 33,550 Stockholders' equity Common stock, par value $.01 per share (Shares outstanding 2014: 635,134,594 Shares outstanding - 2013: 663,296,239) Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income (loss) Stockholders' equity - net Non-controlling interest Total Equity Total liabilities and stockholders' equity $ $ $ $ Op Op Op Non Op Op Op Op Non Non Non Non Non NOPAT = NOPBT - [Tax expense + (Pretax net nonoperating expense x Statutory Tax rate Pretax net nonoperating expense NOPBT Tax expense Statuatory Tax Rate Total 2014 $ 7,026### ### 37% $ 4,958 2013 $ 6,562### ### 37% NOA = Operating assets - Operating Liablities NOA = Operating assets - Operating Liablities Operating assets Operating Liabilities NOA 2014 $ 27,350### $ 21,458 2013 $ 29,307### $ $ 4,683 a. Compute net operating profit after tax (NOPAT) for 2014and 2013. Assume that combined federal and state statutory tax rates are 37%. b. Compute net operating assets (NOA) for 2014 and 2013. 23,492 Return on net operating assets (RNOA)= RNOA NOPAT $ 2014 23.10% 2014 4,958.87 $ Net operating profit after tax NOPAT Average net operating assets NOA 2013 19.83% 2013 4,683.56 c. Compute and disaggregate 3M's NOPM 15.58% 15.17% NOAT 148.29% 131.41% NOA $ 21,458 $ 23,492 NNO $ 20,571 $ 23,920 RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2007 and 2006; the 2005 NOA is $12,776 million. Has its RNOA improved or worsened? Explain why. d. Compute net nonoperating obligations (NNO) for 2014and 2013 Confirm the relation: NOA = NNO + Stockholders' equity. Confirmation that RNOA=NOPM*NOAT Using 2014 data 4956/21458=15.58%*131.41%=0.2 e. Compute return on equity (ROE) for 2007 and 2006. (Stockholders' equity in 2005 is $10,395 million.) Asset turnover ratio=net sales/average total assets net sales assets at beginning of 2013 assets at beginning of 2014 $ 31,821 33550 f. Compute the return on assets for 2013 and 2014. g. Comment on the difference between ROE and RNOA. assets at end of 2013 assets at end of 2014 33550 31269 g. Comment on the difference between ROE and RNOA. h. What is the nonoperating return component of ROE for 2013 and 2014. i. Explain the difference between ROE and RNOA. j. Compute the current ratio and quick ratio for 2013 and 2014. Comment on any observed trends. k. Compute times interest earned and liabilities-to-equity ratios for 2013 and 2014. Comment on any changes. l. Compute net working capital for 2013 and 2014. m. Compute accounts receivable turnover for 2013 and 2014. n. Compute inventory turnover for 2013 and 2014. o. Compute operating cash flow to current liabilities for 2013 and 2014. p. Compute operating cash flow to capital expenditures for 2013 and 2014. q. Trend cash from operating, investing, and financing operations. Comment on your findings. r. Compute EPS and Diluted EPS for 2013 and 2014 - check your calculation to the reported EPS in the reported financials. OPAT) for al and state 2014 and 2013. 3M's RNOA into net operating operating asset turnover e 2005 NOA is $12,776 ed or worsened? Explain why. rating obligations (NNO) for 2014and 2013. OA = NNO + Stockholders' equity. (ROE) for 2007 and 2006. 5 is $10,395 million.) r 2013 and 2014. ference between ROE and RNOA. ference between ROE and RNOA. rating return component of ROE for ce between ROE and RNOA. nt ratio and quick ratio for 2013 and any observed trends. erest earned and liabilities-to-equity 014. Comment on any changes. et working capital for 2013 and 2014. ts receivable turnover for 2013 and ory turnover for 2013 and 2014. ating cash flow to current liabilities for sh flow to capital expenditures for erating, investing, and financing t on your findings. ed EPS for 2013 and 2014 - he reported EPS in the reported 3M Income Statement Year ended December 31 ($ millions) Net Sales $ Operating Expenses Cost of Sales $ Selling, general and administrative expenses $ Research, development and related expenses $ Gain on sale of businesses Total $ Operating income $ Interest expense and income Interest expense Interest income Total Income before income taxes, monthlly interest and cumulative effect of accounting change Provision for income taxes Minority interest Income before cumulative effect of accounting change Net Income 3M Balance Sheet Year ended December 31 ($ millions) Assets Cash and cash equivalents Marketable securities - current Accounts receivable - net of allowances of $75 Inventories Finished goods Work in process Raw materials and supplies Total inventories Other current assets Total current assets Marketable securities - noncurrent Investments Property, plant, and equipment Less: Accumulated depreciation 2007 24,462 $ 2006 22,923 2005 $ 21,167 $ 10,408 $ 4,631 $ 1,274 --$ 16,313 $ 4,854 12,735 5,015 1,368 ($849) 18,269 6,193 $ $ $ $ $ 11,713 5,066 1,522 ($1,074) 17,227 5,696 $ $ $ 210 (132) 78 $ $ $ 122 (51) 71 $ $ $ 82 (56) 26 $ $ $ 6,115 1,964 55 -4,096 $ $ $ 5,625 1,723 51 $ $ $ 3,851 $ 4,828 1,627 55 -3,146 $ -$ 31-Dec-07 31-Dec-06 $ $ $ 1,896 $ 579 $ 3,362### $ 1,447 471 3,102 $ $ $ $ $ $ 1,349### 880 623 2,852 1,149 9,838 $ $ $ $ $ $ 1,235 795 571 2,601 1,325 8,946 $ $ $ 166 314 17,017 ($11,110) $ $ $ 480 298 18,390 ($11,808) Property, plant, and equipment - net Goodwill Intangible assets - net Prepaid pension and postretirement benefits Other assets Total assets $ $ $ $ $ $ 6,582 4,589 801 1,378 728 24,694 $ $ $ $ $ $ 5,907 4,082 708 395 776 21,294 Liabilities and stockholders' equity Short-term borrowings and current portion of long-term debt Accounts payable Accrued payroll Accrued income taxes Other current liabilities Total current liabilities Long-term debt Other liabilities Total liabilities $ $ $ $ $ $ $ $ $ 901 1,505 580 543 1,833 5,362 4,019 3,566 12,947 $ $ $ $ $ $ $ $ $ 2,506 1,402 520 1,134 1,761 7,323 1,047 2,965 11,335 9 2,785 20,316 ($10,520) ($96) ($747) $ 11,747 $ 24,694 $ $ $ 9 2,484 17,933 ($8,456) ($138) ($1,873) 9,959 21,294 Stockholders' equity Common stock, par value $.01 per share (Shares outstanding 2007: 709,156,301 Shares outstanding - 2006: 734,362,802) Additional paid-in capital Retained earnings Treasury stock Unearned compensation Accumulated other comprehensive income tax Stockholders' equity - net Total liabilities and stockholders' equity $ $ $ $ $