Directly Compute Nonoperating Return with Noncontrolling Interest Selected balance sheet and income statement information from Abbott Laboratories for 2018 follows ($ millions). $ millions Net income Net income attributable to Company shareholders Net operating profit after tax (NOPAT) Net nonoperating expense (NNE) Average net operating assets (NOA) 62,689 Average net nonoperating obligations (NNO) 22,506 Average total equity 40,183 Average equity attributable to Company shareholders 39,924 $3,078 3,078 3,822 744 Compute the following measures a through h. . Return on equity = (Net income attributable to Company shareholders/Average equity attributable to Company shareholders) Net income attributable to Company shareholders Average equity attributable to Company shareholders $ ROE %

Directly Compute Nonoperating Return with Noncontrolling Interest Selected balance sheet and income statement information from Abbott Laboratories for 2018 follows ($ millions). $ millions Net income Net income attributable to Company shareholders Net operating profit after tax (NOPAT) Net nonoperating expense (NNE) Average net operating assets (NOA) 62,689 Average net nonoperating obligations (NNO) 22,506 Average total equity 40,183 Average equity attributable to Company shareholders 39,924 $3,078 3,078 3,822 744 Compute the following measures a through h. . Return on equity = (Net income attributable to Company shareholders/Average equity attributable to Company shareholders) Net income attributable to Company shareholders Average equity attributable to Company shareholders $ ROE %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements. ($ millions) Sales Net income, consolidated Net income attributable to 3M shareholders Pretax interest expense Assets Total equity Equity attributable to 3M shareholders Net income consolidated S a. Compute return on equity (ROE) from the perspective of a 3M shareholder. Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE Numerator Denominator E Net income consolidated (adjusted) 2018 2017 $32,765 5,363 5,349 S 207 36,500 $37,987 9,848 11,622 9,796 11,563 S + Average total equity 5,349 $ b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. (Perform these computations from a consolidated perspective). Profit Margin (PM) Note: 1. Select the appropriate numerator and denominator used to…
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