3M COMPANY Consolidated Statements of Income For Years ended December 31 ($ millions) Net sales Operating...

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3M COMPANY Consolidated Statements of Income For Years ended December 31 ($ millions) Net sales Operating expenses Cost of sales Selling, general and administrative expenses Research, development and related expenses Gain on sale of businesses Total operating expenses Operating income Other expense, net* Income before income taxes Provision for income taxes Net income including noncontrolling interest Less: Net income attributable to noncontrolling interest Net income attributable to 3M *Interest expense, gross 2018 2017 $32,765 $31,657 16,682 16,055 7,602 6,626 1,821 1,870 (547) (586) 25,558 23,965 7,692 144 7,207 207 7,000 7,548 1,637 2,679 5,363 4,869 14 11 $5,349 $350 $4,858 $322 At December 31 ($ millions, except per share amount) Current Assets Cash and cash equivalents Marketable securities Accounts receivable Total inventories 3M COMPANY Consolidated Balance Sheets Prepaids Other current assets Total current assets Property, plant and equipment-net Goodwill Intangible assets-net Other assets Total assets Current liabilities 2018 Long-term debt Pension and postretirement benefits Other liabilities Total liabilities 2017 $2,853 $3,053 380 1,076 5,020 4,911 4,366 4,034 741 937 349 266 13,709 14,277 8,738 8,866 10,051 10,513 2,657 2,936 1,345 1,395 $36,500 $37,987 Short-term borrowings and current portion of long-term debt $1,211 $1,853 Accounts payable 2,266 1,945 Accrued payroll 749 870 Accrued income taxes 243 310 Other current liabilities 2,775 2,709 Total current liabilities 7,244 7,687 13,411 12,096 2,987 3,620 3,010 2,962 26,652 26,365 Total liabilities 3M Company shareholders' equity Common stock, par value 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 Combined federal and state statutory tax rate 26,652 26,365 9 9 5,643 5,352 40,636 39,115 (29,626) (25,887) (6,866) (7,026) 9,796 11,563 52 59 9,848 11,622 $36,500 $37,987 22% a. Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22%. NOPAT b. Compute net operating assets (NOA) for 2018 and 2017. Year NOA 2015 $ 2017 S c. Compute and disaggregate 3M's RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Demonstrate that RNOA NOPMX NOAT. Numerator Denominator RNOA Ratio NOPM NOAT naine Numerator Numerator Number # Denominator Denominator 0 O NOPM NOAT ***RNOA may be different from first RNOA calculation due to rounding d. Compute net nonoperating obligations (NNO) for 2018 and 2017. Confirm the relation: NOA = NNO + Total equity Year NNO 2018 $ 2017 $ Year NNO 2018 S 2017 S Total equity $ $ $ $ NOA e. Compute return on equity (ROE) for 2018. Numerator $ 0 0 Denominator f. What is the nonoperating return component of ROE for 2018? ROE RNOA Nonoperating component of ROE 0% ( ROE % 3M COMPANY Consolidated Statements of Income For Years ended December 31 ($ millions) Net sales Operating expenses Cost of sales Selling, general and administrative expenses Research, development and related expenses Gain on sale of businesses Total operating expenses Operating income Other expense, net* Income before income taxes Provision for income taxes Net income including noncontrolling interest Less: Net income attributable to noncontrolling interest Net income attributable to 3M *Interest expense, gross 2018 2017 $32,765 $31,657 16,682 16,055 7,602 6,626 1,821 1,870 (547) (586) 25,558 23,965 7,692 144 7,207 207 7,000 7,548 1,637 2,679 5,363 4,869 14 11 $5,349 $350 $4,858 $322 At December 31 ($ millions, except per share amount) Current Assets Cash and cash equivalents Marketable securities Accounts receivable Total inventories 3M COMPANY Consolidated Balance Sheets Prepaids Other current assets Total current assets Property, plant and equipment-net Goodwill Intangible assets-net Other assets Total assets Current liabilities 2018 Long-term debt Pension and postretirement benefits Other liabilities Total liabilities 2017 $2,853 $3,053 380 1,076 5,020 4,911 4,366 4,034 741 937 349 266 13,709 14,277 8,738 8,866 10,051 10,513 2,657 2,936 1,345 1,395 $36,500 $37,987 Short-term borrowings and current portion of long-term debt $1,211 $1,853 Accounts payable 2,266 1,945 Accrued payroll 749 870 Accrued income taxes 243 310 Other current liabilities 2,775 2,709 Total current liabilities 7,244 7,687 13,411 12,096 2,987 3,620 3,010 2,962 26,652 26,365 Total liabilities 3M Company shareholders' equity Common stock, par value 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 Combined federal and state statutory tax rate 26,652 26,365 9 9 5,643 5,352 40,636 39,115 (29,626) (25,887) (6,866) (7,026) 9,796 11,563 52 59 9,848 11,622 $36,500 $37,987 22% a. Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22%. NOPAT b. Compute net operating assets (NOA) for 2018 and 2017. Year NOA 2015 $ 2017 S c. Compute and disaggregate 3M's RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Demonstrate that RNOA NOPMX NOAT. Numerator Denominator RNOA Ratio NOPM NOAT naine Numerator Numerator Number # Denominator Denominator 0 O NOPM NOAT ***RNOA may be different from first RNOA calculation due to rounding d. Compute net nonoperating obligations (NNO) for 2018 and 2017. Confirm the relation: NOA = NNO + Total equity Year NNO 2018 $ 2017 $ Year NNO 2018 S 2017 S Total equity $ $ $ $ NOA e. Compute return on equity (ROE) for 2018. Numerator $ 0 0 Denominator f. What is the nonoperating return component of ROE for 2018? ROE RNOA Nonoperating component of ROE 0% ( ROE %

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It appears you are looking to analyze the financial performance and health of 3M Company by calculating various financial metrics including Net Operating Profit After Tax NOPAT Net Operating Assets NO... View the full answer