Compute ROE and Nonoperating Return Refer to the balance sheets and income statement for Under Armour Inc. in P3.47. Use these financials to answer the requirements. For the 2015 fiscal year, Under Armour had a return on net operating assets (RNOA) of 15.17%. a. Compute ROE. b. Compute net nonoperating obligations (NNO). c. Compute FLEV and Spread. d. Show that ROE = RNOA + (FLEV X Spread). e. What is the nonoperating retum for the year? What does this suggest about Under Armour's use of debt? UNDER ARMOUR INC. Consolidated Statements of Income For 12 Months Ended (S in 000s) Net revenues ......... ........... Cost of goods sold.......... Gross profit. ..... Selling, general and administrative expenses .. Income from operations... Interest expense, net ..... Other expense, net........ Income before income taxes ...... Provision for income taxes......... Net income.. Dec. 31, 2015 $3,963,313 2,057,766 1,905,547 1,497,000 406,547 (14.628) (7.234) 386,685 154,112 $ 232 573 UNDER ARMOUR INC. Consolidated Balance Sheet Dec. 31, 2015 Sin 000s Dec. 31, 2014 $ 129,852 433,638 783,031 152,242 1,498,763 538,531 585,181 75,686 92,157 78,582 $2.868,900 $ 593,175 279,835 536,714 87,177 52,498 1,549,399 305,564 123,256 26.230 33,570 57,064 $2.095,083 Assets Cash and cash equivalents Accounts receivable, net... Inventories .... . .. . .. Prepaid expenses and other current Deferred income taxes.. Total current assets .... Property and equipment, net. Goodwill.. Intangible assets, net... Deferred income taxes... Other long-term assets .. Total assets.... Liabilities and Stockholders' Equity Accounts payable..... Accrued expenses ......... Current maturities of long term-debt. Other current liabilities .... Total current liabilities.. Long-term debt, net of current maturities Long-term line of credit, noncurrent. Other long-term liabilities.......... Total liabilities...... Stockholders' equity Additional paid-in capital.... Petained earnings ....... Accumulated other comprehensive loss ...... Total stockholders' equity ... Total liabilities and stockholders' equity..... $ 200,460 192,935 42,000 43.415 478,810 352,000 275,000 94,868 1,200.678 $ 210,432 147.691 28.951 34,563 421,627 255,250 67,906 744.783 636.630 1,076,533 (45,013) 1.668.222 $2,868,900 508,350 856,687 (14,808) 1,350, 300 $2,095,083