Answer A and B

P9-51. LO3 WINDS CORPC Reformulating RNOA for Acquisition Gross Profit Effects ADJUSTMENTS 9.2 Windstream Corporation, a communications and technology solutions company, acquired PAETEC Holding Corporation in 2011. The merger was designed to increase Windstream's nationwide network with a more substantial fiber footprint. Use the selected financial statement and analysis data that follow to answer the requirements. Both net operating profit after tax (NOPAT) and average net operating assets (NOA) are unadjusted for the effects of acquisition accounting. PAETEC CORPG (P2 $ millions PAETEC 2010 Windstream 2010 Windstream 2011 $1,624 809 197 $3,711 1,402 694 $ 4,286 1,790 848 12,763 7,055 1,514 654 11,254 6,490 Sales revenue. ... Cost of goods or services sold ........ Depreciation and amortization expense...... Property, plant and equipment (at cost)...... Accumulated depreciation ........ Intangible assets (excluding goodwill and other indefinite-life intangibles). .... Property, plant and equipment and finite-lived intangible asset acquisitions. ............ Net operating profit after tax (NOPAT) ....... Average net operating assets (NOA) ........ 280 2,039 2,685 702 624 10,035 654 6,844 1,231 Required a. Compute 2010 pre-merger RNOA for Windstream and PAETEC. b. Compute the unadjusted 2011 RNOA for the combined company