Analysis and interpretation of profitability
balance sheets and income statements for 3m company follow.
3m company
consolidated statements of income
for years ended december 31 ($ millions) 2015 2014 2013
net sales $30,274 $31,821 $30,871
operating expenses
cost of sales 15,383 16,447 16,106
selling, general and administrative expenses 6,182 6,469 6,384
research, development and related expenses 1,763 1,770 1,715
total operating expenses 23,328 24,686 24,205
operating income 6,946 7,135 6,666
interest expenses and income
interest expense 149 142 145
interest income (26) (33) (41)
total interest expense--net 123 109 104
income before income taxes 6,823 7,026 6,562
provision for income taxes 1,982 2,028 1,841
net income including noncontrolling interest $4,841 $4,998 $4,721
less: net income attributable to noncontrolling interest 8 42 62
net income attributable to 3m $ 4,833 $ 4,956 $ 4,659
3m company
consolidated balance sheets
at december 31 ($ millions, except per share amount) 2015 2014
current assets
cash and cash equivalents $1,798 $1,897
marketable securities-current 118 1,439
accounts receivable-net of allowances of $91 and $94 4,154 4,238
inventories
finished goods 1,655 1,723
work in process 1,008 1,081
raw materials and supplies 855 902
total inventories 3,518 3,706
other current assets 1,398 1,023
total current assets 10,986 12,303
marketable securities-noncurrent 9 15
investments 117 102
property, plant and equipment 23,098 22,841
less: accumulated depreciation (14,583) (14,352)
property, plant and equipment-net 8,515 8,489
goodwill 9,249 7,050
intangible assets-net 2,601 1,435
prepaid pension benefits 188 46
other assets 1,053 1,769
total assets $32,718 $31,209
liabilities
current liabilities
short-term borrowings and current portion of long-term debt $2,044 $106
accounts payable 1,694 1,807
accrued payroll 644 732
accrued income taxes 332 435
other current liabilities 2,404 2,884
total current liabilities 7,118 5,964
long-term debt 8,753 6,705
pension and postretirement benefits 3,520 3,843
other liabilities 1,580 1,555
total liabilities $20,971 $18,067
equity
3m company shareholders' equity
common stock, par value $0.01 per share:
shares outstanding-2015: 609,330,124;
shares outstanding-2014: 635,134,594 $9 $9
additional paid-in capital 4,791 4,379
retained earnings 36,575 34,317
treasury stock (23,308) (19,307)
accumulated other comprehensive income (loss) (6,359) (6,289)
total 3m company shareholders' equity 11,708 13,109
noncontrolling interest 39 33
total equity $11,747 $13,142
total liabilities and equity $32,718 $31,209
(a) compute net operating profit after tax (nopat) for 2015. assume that the combined federal and statutory rate is: 37.0% (round your answer to the nearest whole number.)
2015 nopat =answer($ millions)