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Please help with this one. Please show work if possible. Thank you! Question 6 Partially correct Mark 1.00 out of 11.00 P Flag question Analysis

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Please help with this one. Please show work if possible. Thank you!

Question 6 Partially correct Mark 1.00 out of 11.00 P Flag question Analysis and Interpretation of Profitability Balance sheets and income statements for 3M Company follow. Consolidated Statements of Income Years ended December 31 ($ millions) 2010 2009 2008 Net sales $26,662 $23,123 $25,269 Operating expenses Cost of sales 13,831 12.109 13,379 Selling, general and administrative expenses 5,479 4,907 5,245 Research, development and related expenses 1,434 1,293 1,404 Loss/(gain) from sale of business 23 Total operating expenses 20,744 18,309 20,051 Operating income 5,918 4,814 5,218 Interest expenses and income Interest expense 201 219 215 Interest income (38) (37) (105) Total interest expense 163 182 110 Income before income taxes 5,755 4,632 5,108 Provision for income taxes 1,592 1,388 1,588 Net income including noncontrolling interest 4,163 3,244 3,520 Less: Net income attributable to noncontrolling interest 78 51 60 Net income $ 4,085 $3,193 $3,460 Consolidated Balance Sheets ($ millions) 2010 2009 Assets $ 3,377 $ 3,040 1,101 744 3,615 3,250 1,476 1,255 815 950 729 569 3,155 967 12,215 540 2,639 1,122 10,795 825 146 103 20,253 19,440 (12,974) (12,440) 7,279 7,000 6,820 5,832 1,820 1,342 74 78 1,262 1,275 $30,156 $ 27,250 Current Assets Cash and cash equivalents Marketable securities-current Accounts receivable-net 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 Property, plant and equipment-net Goodwill Intangible assets-net Prepaid pension benefits Other assets Total assets Liabilities Current liabilities 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 postretirement benefits Other liabilities Total liabilities Equity 3M Company shareholders' equity: Common stock, par value 5.01 per share; Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income (loss) Total 3M Company shareholders' equity Noncontrolling interest Total equity Total liabilities and equity $ 1,269 1,662 778 358 2,022 6,089 4,183 2,013 1,854 14,139 $ 613 1,453 680 252 1,899 4,897 5,097 2,227 1,727 13,948 9 9 3,468 3,153 25,995 23,753 (10,266) (10,397) (3,543) (3,754) 15,663 12,764 354 538 16,017 13,302 $ 30,156 $ 27,250 (a) Compute net operating profit after tax (NOPAT) for 2010. Assume that the combined federal and statutory rate is: 37.0% (Round your answer to the nearest whole number.) 2010 NOPAT = 3,729 X $ millions) (b) Compute net operating assets (NOA) for 2010 and 2009. Treat noncurrent Investments as a nonoperating item. 2010 NOA = 15,744 x ($ millions) 2009 NOA = 14,381 X ($ millions) (c) Compute 3M's RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2010. (Round your answers to two decimal places. Do not round until your final answer. Do not use NOPM x NOAT to calculate RNOA.) 2010 RNOA = 24.75 X % 2010 NOPM = 0 X % 2010 NOAT = 0 X (d) Compute net nonoperating obligations (NNO) for 2010 and 2009. 2010 NNO = 0 x ($ millions) 2009 NNO = 0 * ($ millions) (e) Compute return on equity (ROE) for 2010. (Round your answers to two decimal places. Do not round until your final answer.) 2010 ROE = 0 X % (f) What is the nonoperating return component of ROE for 2010? (Round your answers to two decimal places.) 2010 nonoperating return = 0 X %

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