Return to course Business Course Balance sheets and income statements for BM Company follow. 3M COMPANY Consolidated Statements of Income For Years Ended December 31 (5 millions) 2018 2017 Net sales $32,830 531,721 Operating expenses Cost of sales 16.682 16.055 Selling general and administrative expenses 7602 6.626 Research, development and related expenses 1.821 17.870 Gain on sale of businesses (547) (586) Total operating expenses 25,558 23.965 Operating income 7.256 Other expense.net 207 144 Income before income taxes 7,065 7,612 Provision for income taxes 7.637 2679 Net income including noncontrolling interest 5.428 4933 Less Net income attributable to noncontrolling interest 14 11 Net Income attributable to 3M S5414 54922 * Interest expense, gross is 5350 million in 2018 and 5322 million in 2017, 7.272 A 3M COMPANY Consolidated Balance Sheets At December 31 (5 millions) 2018 2017 Current assets Cash and cash equivalents 52,853 53.053 Marketable securities 380 1.076 Accounts receivable 5.OBS 4973 Total inventories 4356 4034 Prepaids 741 937 Other current assets 349 266 Total current assets 13.774 14341 Property plant and equipment net 8.738 8.866 Goodwili 10.051 10.513 Intangible assets-net 2.657 2.936 Other assets 1345 Total assets 536.565 $38.65 Current abilities Short-term borrowings and current portion of long-term debt 51211 51.85 Accounts payable 2.266 1945 Ture haut BusinessCourse # Return to course Consolidated Balance Sheets At December 31 (5 millions) 2018 2017 Current assets $2.853 $3,053 Cash and cash equivalents Marketable securities 380 1,076 Accounts receivable 5.085 4,975 Total Inventories 4366 4,034 Prepalds 741 937 Other current assets 349 266 Total current assets 13.774 14.341 Property, plant and equipment net 8.738 8.866 Goodwill 10.05 10.513 Intangible assets-net 2,657 2.938 Other assets 1345 1.895 Total assets $36.565 538,055 Current liabilities Short-term borrowings and current portion of long-term cebt51.21 51.853 Accounts payable 2266 1.945 Accrued payroll 749 870 Accrued income taxes 243 310 Other current liabilities 2.775 2.709 Total current liabilities 7244 7.687 Long-term debt 13:41 12.096 Pension and postretirement benefits 2.987 3,620 Other liabilities 3.010 2.062 Total liabilities $26,652 $26.365 SM Company shareholders equity Common stock par value 9 Additional paid in capital 5.643 5352 Retained earning 40.701 39.170 Treasury stock (29 626) 25.887 Accumulated other comprehensive income foss) (6,866) 17.0263 Total 3M Company shareholders' eouty 9.861 11627 Noncontrolling interest 52 59 9913 11.635 Totallaties and equity 536.565 538.05 In 2018, 3M's return on equity (ROE) is 50.39% and its return on net operating assets (RNOAN Required Total equity Spread: e. Compute the noncontrolling interest ratio (NCI ratio). Note: Round your answers to four decimal places (for example, enter 6.7756 for 6.775555). NCS ratio: f. Confirm the relation: ROE = [RNOA + (FLEV * Spread)] * NCI ratio. Note: For FLEV, round amount to three decimal places (for example, enter 6.776 for 6.775555). Note: For RNOA and Spread round percentages to two decimal places (for example, enter 6.66% for 6.6555%). Note: Round NCI ratio, round amount to four decimal places (for example, enter 1.7756 for 1.77555). Note: Round ROE to the nearest whole percentage. + FLEV x Spread X NCI Ratio 96 + RNOA ROE 96