Required:

b. Compute net operating assets (NOA) for 2011 and 2010.

c. Compute return on net operating assets (RNOA) for 2011 and 2010. Net operating assets are $1,673.0 million in 2009.

d. Compute return on equity (ROE) for 2011 and 2010. (Stockholders equity in 2009 is $1,290.0 million.)

e. What is nonoperating return component of ROE for 2011 and 2010?

f. Comment on the difference between ROE and RNOA. What inference do you draw from this comparison?

4. Income statements and balance sheets follow for Snap-On Incorporated. Refer to these financial statements to answer the requirements. Prepaid expenses and other assets \begin{tabular}{cc} 75.7 & 72.7 \\ \hline 1,530.7 & 1,765.5 \\ 352.9 & 344.0 \\ 125.2 & 91.5 \\ 431.8 & 345.7 \\ 165.1 & 119.3 \\ 795.8 & 798.4 \\ 188.3 & 192.8 \\ 83.1 & 72.2 \\ \hline$3,672.9 & $3,729.4 \\ \hline \end{tabular} Notes payable and current maturities of long-term debt \begin{tabular}{cc} $16.2 & $216.0 \\ 124.6 & 146.1 \\ 48.8 & 45.0 \\ 91.0 & 86.7 \\ 47.3 & 40.4 \\ 255.9 & 346.9 \\ \hline 583.8 & 881.1 \\ 967.9 & 954.8 \\ 108.1 & 94.4 \\ 52.8 & 59.6 \\ 317.7 & 246.1 \\ 95.3 & 89.0 \\ \hline 2,125.6 & 2,325.0 \\ \hline \end{tabular} Preferred stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) \begin{tabular}{lll} & (174.6) & (104.8) \\ & (386.9) & (387.3) \\ \cline { 2 - 3 } & 1,530.9 & 1,388.5 \end{tabular} Noncontrolling interests \begin{tabular}{ll} 16.4 & 15.9 \\ \hline 1,547.3 & 1,404.4 \\ \hline$3,672.9 & $3,729.4 \\ \hline \end{tabular} 4. Income statements and balance sheets follow for Snap-On Incorporated. Refer to these financial statements to answer the requirements. Prepaid expenses and other assets \begin{tabular}{cc} 75.7 & 72.7 \\ \hline 1,530.7 & 1,765.5 \\ 352.9 & 344.0 \\ 125.2 & 91.5 \\ 431.8 & 345.7 \\ 165.1 & 119.3 \\ 795.8 & 798.4 \\ 188.3 & 192.8 \\ 83.1 & 72.2 \\ \hline$3,672.9 & $3,729.4 \\ \hline \end{tabular} Notes payable and current maturities of long-term debt \begin{tabular}{cc} $16.2 & $216.0 \\ 124.6 & 146.1 \\ 48.8 & 45.0 \\ 91.0 & 86.7 \\ 47.3 & 40.4 \\ 255.9 & 346.9 \\ \hline 583.8 & 881.1 \\ 967.9 & 954.8 \\ 108.1 & 94.4 \\ 52.8 & 59.6 \\ 317.7 & 246.1 \\ 95.3 & 89.0 \\ \hline 2,125.6 & 2,325.0 \\ \hline \end{tabular} Preferred stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) \begin{tabular}{lll} & (174.6) & (104.8) \\ & (386.9) & (387.3) \\ \cline { 2 - 3 } & 1,530.9 & 1,388.5 \end{tabular} Noncontrolling interests \begin{tabular}{ll} 16.4 & 15.9 \\ \hline 1,547.3 & 1,404.4 \\ \hline$3,672.9 & $3,729.4 \\ \hline \end{tabular}