Required (a) compute the return on assets (ROA) and return on equity (ROE) for 2016 (b) Complete the DuPont disaggregation of return on equity (ROE) for 2016. Analyze the DuPont financial ratios and discuss how Cisco Systems Inc. can achieve a high ROE. (c) Compute net operating assets (NOA) for 2016. (d) Compute net operating profit after tax (NOPAT) for 2016, assuming a federal and state statutory tax rate of 37%. (Round your answer to the nearest whole number.) (e) Forecast Cisco's sales, NOPAT, and NOA for years 2017 through 2020 and the terminal period using the following assumptions:

Cisco Systems Inc Consolidated Statements of Income Years Ended December (S millions Julv 30, 2016 July 25, 2015 evenue $37,254 11.993 49 247 $37,750 11,411 49,161 Product Service Total revenue st of sales Product Service 14,161 4,126 18,287 30,960 15,377 4,103 19.480 29,681 otal cost of sales ross margin rating expenses Research and development Sales and marketing General and administrative Amortization of purchased intangible assets Restructuring and other charges 6.296 9,619 1,814 303 268 18,300 12.660 6,207 9,821 2,040 359 484 18,911 10,770 Total operating expenses ating income est income terest expense ther income (loss), net terest and other income (loss), net come before provision for income taxes 1,005 (676) (69) 260 769 (566) 228 431 12,920 2,181 11,201 2,220 vision for income taxes et income $10,739 $8,981 Cisco Systems Inc. Consolidated Balance Sheets n millions, except par value July 30, 2016 July 25, 201!5 ssets assets Cash and cash equivalents Investments $7,631 58,125 $6,877 53,539 Accounts receivable, net of allowance for doubtful accounts of S2495 842 at July 30, 2016 and $302 at July 25, 2015 Inventorie:s Financing receivables, net Other current assets 5,344 1,627 4,491 1,490 73,368 3,332 3,858 24,469 2,376 4,454 1,516 $113,373 1,217 4,272 1.627 78,719 Total current assets and equipment, net 3,506 4,158 26,625 2,501 4,299 1.844 $121.652 Financing receivables, net dwill d intangible assets, net ferred tax assets assets otal assets abilities ent liabilities Short-term debt Accounts payable Income taxes payable Accrued compensation Deferred revenue Other current liabilities $4,160 1,056 517 2,951 10,155 6.072 $3,897 1,104 62 3,049 9,824 47 Total current liabilities 24,911 23,412 21,457 1,876 5,359 1,562 53,666 ng-term debt 24,483 925 6,317 1431 58,067 taxes payable ferred revenue long-term liabilities Total liabilities Cisco Systems Inc. Consolidated Balance Sheets n millions, except par value July 30, 2016 July 25, 201!5 sco shareholders' equity Preferred stock, no par value: 5 shaes authorized, none issued and Common stock and additional paid-in capital, S0.001 par value 20,000 shares authorized; 5,029 and 5,085 shares issued and outstanding at July 30, 2016 and July 25, 2015, respectively Retained earnings Accumulated other comprehensive income (loss) 44,516 43,592 19,396 (326) 63,586 16,045 61 59,698 Total Cisco shareholders' equity oncontrolling interests Total equity 63,585 59,707 Total liabilities and equity $121,652 $113,373 Required (a) compute the return on assets (ROA) and return on equity (ROE) for 2016 (b) Complete the DuPont disaggregation of return on equity (ROE) for 2016. Analyze the DuPont financial ratios and discuss how Cisco Systems Inc. can achieve a high ROE (c) Compute net operating assets (NOA) for 2016 (d) Compute net operating profit after tax (NOPAT) for 2016, assuming a federal and state statutory tax rate of 37%. (Round your answer to the nearest whole number.) (e) Forecast Cisco's sales, NOPAT, and NOA for years 2017 through 2020 and the terminal period using the following assumptions Sales growth 2017 Sales growth 2018-2020 Terminal growth Net operating profit margin Net operating asset turnover 1% 2016 rate rounded to three decimal places 2016 rate rounded to three decimal places