Compute Net Operating Profit after tax (NOPAT) for 3M 2014. Assume that the comb

ID: 2416596 • Letter: C

Question

Compute Net Operating Profit after tax (NOPAT) for 3M 2014. Assume that the combined federal and state statutory tax rate is 37%.

Consolidated Statement of Income for 3M

Net sales $31,821

Cost of sales $16,447

Selling, Admin expenses $6,469

Research, development and related expenses $1,770

Total Operating Expenses $24,686

Interest expense and income

Interset expense $142

Interest income $(33)

Total interest expense- net $109

Income before Income Taxes $7,026

Provision for Income taxes $2,028

Net income including noncontroling interest $4998

Less: Net income attributable to noncontrolling interest $42

Net income attributable to 3M $4956

Weighted average 3m common shares outstanding-basic $649.2

Earnings pr share attributable to 3M common Shareholders- 7.63

Weighted average 3M common hsares outstanding-diluted 662.0

Earnings per share attributable to 3M common shareholders-diluted 7.49

Cash dividends paid per 3M common share 3.42

Net Income including noncontrolling interest $4,998

NOPAT = NOPBT - [Tax expense + (Pretax net nonoperating expense x Statutory Tax rate

=7026 - ((2028+(109*37%)) = 4958

NOPAT = NOPBT - [Tax expense + (Pretax net nonoperating expense x Statutory Tax rate

=7026 - ((2028+(109*37%)) = 4958

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