Income statements and balance sheets follow for Snap-On Incorporated. Refer to these financial statements to answer the following questions. Snap.pdf

1. Compute net operating profit after tax (NOPAT) for 2016 and 2015. Assume that combined federal and state statutory tax rate is 37% for both fiscal years.
2. Compute net operating assets (NOA) for 2016 and 2015.
3. Compute return on net operating assets (RNOA) for 2016 and 2015. Comment on the year-over-year change. Net operating assets are $3,011.7 million in 2014.
4. Disaggregate RNOA into profitability and asset turnover components (NOPM and NOAT, respectively). Remember to include both net sales and financial services revenue in total revenue. What explains the year-over-year change in RNOA?

Snap-On Incorporated Consolidated Statements of Earnings (Amounts in millions) For the fiscal year ended 2016 2015 Net sales $ 3,430.4 $ 3,352.8 Cost of goods sold (1,720.8) (1,704.5) 1.709.6 1,6483 Gross profit Operating expenses (1,054.1) (1,053.71 Operating earnings before financial services 655.5 594.6 Financial services revenue 281.4 240.3 Financial services expenses (82.7) (70.1) Operating income from financial services 198.7 170.2 Operating earnings 854.2 764.8 Interest expense (52.2) (51.9) Other income (expense) - net (0.6) (2.4) Earnings before income taxes and equity earnings 801.4 710.5 Income tax expense (244.3) (221.2) 489.3 557.1 Earnings before equity earnings Equity earnings, net of tax 1.3 Net earnings 559.6 490.6 Net earnings attributable to noncontrolling interests (11.9) (13.2) $ 546.4 Net earnings attributable to Snap-on Incorporated $ 478.7 Snap-On Incorporated Consolidated Balance Sheets Fiscal Year End (Amounts in millions) 2016 2015 $ 77.6 598.8 Cash and cash equivalents Trade and other accounts receivable - net Finance receivables - net Contract receivables - net Inventories - net 472.5 $ 92.8 562.5 447.3 82.1 497.8 88.1 530.5 0.0 Deferred income tax assets 109.9 106.3 Prepaid expenses and other assets Total current assets 116.5 1,884.0 1,898,7 Property and equipment - net Deferred income tax assets Long-term finance receivables - net Long-term contract receivables - net Goodwill Other intangibles - net 425.2 72.8 934.5 286.7 895.5 184.6 39.9 4,723.2 413.5 106.3 772.7 266.6 790.1 195.0 Other assets 44.0 Total assets 4486.9 Notes payable and current maturities of long-term debt Accounts payable 301.4 170.9 52.8 Accrued benefits 18.4 148.3 52.1 91.0 64.4 296.3 89.8 66.7 307.9 989.5 670.5 708.8 Accrued compensation Franchisee deposits Other accrued liabilities Total current liabilities Long-term debt Deferred income tax liabilities Retiree health care benefits Pension liabilities Other long-term liabilities Total liabilities 861.7 169.8 13.1 36.7 37.9 227.8 246.5 93.4 2,088.0 88.5 $2,056.2 Preferred stock Common stock Additional paid-in capital 67.4 317.3 3,384.9 Retained earnings Accumulated other comprehensive income (loss) $67.4 296.3 2,986.9 (3642) (573.7) 2,412.7 (498.5) Treasury stock at cost Total shareholders' equity attributable to Snap-on Inc. (653.9) 2,617.2 18.0 Noncontrolling interests 18.0 Total shareholders' equity 2,635.2 $4,723.2 2,430.7 $4,486.9 Total liabilities and shareholders' equity