MERCK & COMPANY, INC. Year 9 Selected Financial Data ($ millions) Income Statement Data Sales revenue $7,120 Depreciation 230 Interest expense 10 Pretax income 2,550 Income taxes 900 Net income 1650 Balance Sheet Data Current assets $4,850 Fixed assets, net 2,400 Total assets 7,250 Current liabilities 3,290 Long-term debt 100 Shareholders' equity 3,860 Total liabilities & shareholders' equity 7,250 Find: Disaggregate Merck's ROCE into operating (RNOA) and nonoperating components. Comment on Merck's use of leverage. (Assume all assets and current liabilities are operating and a 35% tax rate.)