The companys balance sheets, and income statements follow. Refer to these financial statements to answer the requirements.

1. Compute net operating profit after tax (NOPAT) for 2015. Assume that the combined federal and state statutory tax rate is 37%. [Note: Interest and other expense, net of 1,013 million is expense (outflow) (1,013)] (2 points)
2. Compute net operating assets (NOA) for 2015 and 2014. (2 points)
3. Compute RNOA and disaggregate it into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2015; confirm that RNOA = NOPM x NOAT. (2 points)
4. Compute net nonoperating obligations (NNO) for 2015 and 2014. (2 points)
5. Compute return on equity (ROE) for 2015. (2 points)
6. Compute net nonoperating expenses (NNE) for 2015. [Hint: Use Net earning = 7,291 millions for this calculation] (3 points)
7. Compute financial leverage (FLEV) and Spread for 2015. (3 points)
8. Compute Spread for 2015. (3 points)
9. Compute the 2015 return on equity. The NCI ratio for 2015 is 0.999. Confirm computations to yield the relation: ROE = [RNOA + (FLEV x Spread)] x NCI ratio. (3 points)
10. Infer the nonoperating return component of ROE for 2015. What do your computations of the nonoperating return imply about the companys use of borrowed funds? What does this relation suggest about companys use of debt? What are the key factors? (3 points)