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Please solve this problem. It has three parts attached. 3M COMPANY Consolidated Balance Sheets At December 31 (S millions) 3M Company shareholders' equity Comrnon stock
Please solve this problem. It has three parts attached.
3M COMPANY Consolidated Balance Sheets At December 31 (S millions) 3M Company shareholders' equity Comrnon stock par value Additional paid-in capital.. Retained eamings Treasury stock Accumulated other comprehensive income (loss) . Total 3M Company shareholders' equity Noncontrolling interest Total equity.... ..... ..... ....................................... Total liabilities and equity . Required 2018 9 5,643 40,636 (29,626) (6,866) 9,796 52 9,848 $36,500 2017 9 5,352 39,115 (25,887) (7 ,026) 11,563 59 11 S37,987 a. b. c. d. e. g. Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and State statutory tax rate is 22%. Compute net operating assets (NOA) for 2018 and 2017. Compute and disaggregate 3M's RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Demonstrate that RNOA = NOPM x NOAT. Compute net nonoperating obligations (NNO) for 2018 and 2017. Confirm the relation: NOA = NNO + Total equity. Compute return on equity (ROE) for 2018. What is the nonoperating return component Of ROE for 2018? Comment on the difference between ROE and RNOA. What inference can we draw from this comparison?
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