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

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

E. I. du Pont de Nemours and Company

Consolidated Income Statements

For The Year Ended December 31,

($ millions)

2016

2015

Net sales

$ 24,594

$ 25,130

Cost of goods sold and other operating charges

15,155

15,571

Selling, general and administrative expenses

4,319

4,615

Research and development expense

1,641

1,898

Other (income) expense, net (non-operating)

(708)

(697)

Interest expense

370

342

Employee separation/asset related charges(income), net

552

810

Income from continuing operations before income taxes

3,265

2,591

Provision for income taxes on continuing operations

744

696

Income from continuing operations after income taxes

2,521

1,895

Income from discontinued operations after income taxes

4

64

Net income

2,525

1,959

Less: Net income attributable to noncontrolling interests

12

6

Net income attributable to DuPont

$ 2,513

$ 1,953

E. I. du Pont de Nemours and Company

Consolidated Balance Sheets

As of December 31,

($ millions)

2016

2015

Assets

Cash and cash equivalents

$ 4,605

$ 5,300

Marketable securities

1,362

906

Accounts and notes receivable, net

4,971

4,643

Inventories

5,673

6,140

Prepaid expenses

506

398

Total current assets

17,117

17,387

Net property, plant and equipment

9,231

9,784

Goodwill

4,180

4,248

Other intangible assets

3,664

4,144

Investment in affiliates

649

688

Deferred income taxes

3,308

3,799

Other assets

1,815

1,116

Total assets

$39,964

$41,166

Table continued next page

Table continued

E. I. du Pont de Nemours and Company

Consolidated Balance Sheets—continued

As of December 31,

(in millions)

2016

2015

Liabilities and equity

Accounts payable

$ 3,705

$ 3,398

Short-term borrowings and capital lease obligations

429

1,165

Taxes payable

101

173

Other accrued liabilities

4,662

5,580

Total current liabilities

8,897

10,316

Long-term borrowings and capital lease obligations

8,107

7,642

Other liabilities

12,333

12,591

Deferred income taxes

431

417

Total liabilities

29,768

30,966

Common stock, $0.30 par value

285

288

Preferred stock, without par value – cumulative

237

237

Additional paid-in capital

11,190

11,081

Reinvested earnings

14,924

14,510

Accumulated other comprehensive loss

(9,911)

(9,396)

Common stock held in treasury

(6,727)

(6,727)

Total DuPont stockholders’ equity

9,998

9,993

Noncontrolling interests

198

207

Total equity

10,196

10,200

Total liabilities and stockholders’ equity

$39,964

$41,166

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.

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