Income statements and balance sheets follow for Microsoft Corporation. MICROSOFT CORPORATION Income Statements For the years ended June 30. (in millions) Revenue 2020 2019 Total revenue Product Service Cost of revenue Product Service and other Total cost of revenue $61,502 $75,956 23,818 17,624 85,320 93,580 17,880 21,410 14,900 11,628 32,780 33,038 Gross margin 52,540 60,542 Research and development 11,988 12,046 Sales and marketing 14,697 15,713 General and administrative 4,563 4,611 Impairment, integration, and restructuring 1,110 10,011 Operating income 20,182 18,161 Other income (expense), net (431) 346 Income before taxes 19,751 18,507 Provision for income taxes 2,953 6,314 Net income $16,798 $ 12,193 MICROSOFT CORPORATION Balance Sheet As of June 30, 2020 2019 $ 6,510 $ 5,595 106,730 (in millions) Current assets: Cash and cash equivalents Short-term investments 90,931 Accounts receivable, net 18,277 17,908 Inventories 2,251 2,902 Other current assets 5,892 5,461 Total current assets 139,660 122,797 Property and equipment, net 18,356 14,731 Equity and other investments 10,431 12,053 Accrued compensation Goodwill Intangible assets, net Other long-term assets Total assets Current liabilities: Accounts payable Short-term debt Current portion of long-term debt Income taxes 17,872 16,939 3,733 4,835 3,642 3,117 $193,694 $174,472 $ 6,898 $ 6,591 12,904 4,985 0 2,499 5,264 5,096 580 606 Short-term unearned revenue 27,468 23,223 Other current liabilities 6,243 6,647 Total current liabilities 59,357 49,647 Long-term debt 40,783 27,808 Long-term unearned revenue 6,441 2,095 Deferred income taxes 1,476 1,295 Other long-term liabilities 13,640 13,544 Total liabilities 121,697 94,389 Stockholders' equity: Common stock and paid-in capital 68,178 68,465 Retained earnings 2,282 9,096 Accumulated other comprehensive income 1,537 2,522 Total stockholders' equity 71,997 80,083 Total liabilities and stockholders' equity $193,694 $174,472 Required a)(6 points) Compute net operating profit after tax (NOPAT) for 2020 and 2019. Assume that combined federal and state statutory tax rates are 37% for both years. b)(6 points) Compute net operating assets (NOA) for 2020 and 2019. Assume Equity and other investments are operating assets. c)(6 points) Compute return on net operating assets (RNOA) for 2020 and 2019. Net operating assets are $26,720 million in 2018. d).(4 points) Compute return on equity (ROE) for 2020 and 2019. (Stockholders' equity in 2018 is $89,784 million.) e). (4 points) What is nonoperating return component of ROE for 2020 and 2019? f).(4 points)Comment on the difference between ROE and RNOA. What inference do you draw from this comparison?