Income statements and balance sheets follow for E.I. DuPont de Nemours and Company. Refer to these financial statements to answer the requirements.

Required
a. Compute net operating profit after tax (NOPAT) for 2016 and 2015. Assume that combined federal and state statutory tax rate is 37% for both years.
b. Compute net operating assets (NOA) for 2016 and 2015.
c. Compute return on net operating assets (RNOA) for 2016 and 2015. Net operating assets are $13,239 million in 2014. d. Compute return on equity (RO
E) for 2016 and 2015. DuPont Stockholders' equity in 2014 is $13,320 million. e. What is nonoperating return component of ROE for 2016 and 2015? f. Comment on the difference between ROE and RNOA. What inference do you draw from this comparison?

Question

Income statements and balance sheets follow for E.I. DuPont de Nemours and Company. Refer to these financial statements to answer the requirements.
   
  Required 
a. Compute net operating profit after tax (NOPAT) for 2016 and 2015. Assume that combined federal and state statutory tax rate is 37% for both years.
b. Compute net operating assets (NOA) for 2016 and 2015.
c. Compute return on net operating assets (RNOA) for 2016 and 2015. Net operating assets are $13,239 million in 2014. d. Compute return on equity (RO
E) for 2016 and 2015. DuPont Stockholders' equity in 2014 is $13,320 million. e. What is nonoperating return component of ROE for 2016 and 2015? f. Comment on the difference between ROE and RNOA. What inference do you draw from this comparison?

Quizplus · Accepted Answer

The Answer of Income statements and balance sheets follow for E.I. DuPont de Nemours and Company. Refer to these financial statements to answer the requirements.
   
  Required 
a. Compute net operating profit after tax (NOPAT) for 2016 and 2015. Assume that combined federal and state statutory tax rate is 37% for both years.
b. Compute net operating assets (NOA) for 2016 and 2015.
c. Compute return on net operating assets (RNOA) for 2016 and 2015. Net operating assets are $13,239 million in 2014. d. Compute return on equity (RO
E) for 2016 and 2015. DuPont Stockholders' equity in 2014 is $13,320 million. e. What is nonoperating return component of ROE for 2016 and 2015? f. Comment on the difference between ROE and RNOA. What inference do you draw from this comparison?

Income Statements and Balance Sheets Follow for E