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- Attached are ABC's balance sheet and income statement, in millions. Dividends on Common

Shares were $100 million for 2017. Additional Information:

·      The other current assets, other long-term assets, other current liabilities, and other long-term liabilities have no interest-bearing accounts (they are all operating). 

·      Deferred taxes are operating

·      The long-term investments are investments in subsidiaries that are essential to the operations of the business. Therefore, these are not financing assets. The  investment income on the income statement is related to these subsidiaries.


For 2017, calculate Net Operating Profit after Taxes (NOPAT), Financing Expenses after Taxes (FEAT), Net Operating Assets (NOA), and Net Financing Liabilities (NFL).


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Balance Sheet
2017
Assets
Cash and Short-Term Investments
1,107
Total Receivables, Net
1,769
Total Inventory
1,323
Prepaid Expenses
282
Other Current Assets, Total
361
Total Current Assets
4,842
Property/Plant/Equipment, Total - Net
907
Goodwill, Net
31
Long-Term Investments
750
Note Receivable - Long-Term
1,371
Other Long-Term Assets, Total
254
Total Long-term Assets
3,313
Total Assets
8,155
Liabilities and Shareholders' Equity
Accounts Payable
163
Accrued Expenses
514
Notes Payable/Short-Term Debt
190
Current Port. of LT Debt/Capital Leases
1,332
Other Current Liabilities, Total
70
Total Current Liabilities
2,269
Total Long-Term Debt
4,114
Deferred Income Tax
6
Other Liabilities, Total
659
Total Long-term Liabilities
4,779
Total Liabilities
7,048
Common Stock
3
Additional Paid-In Capital
871
Retained Earnings (Accumulated Deficit)
5,324
Treasury Stock - Common
(5,091)
Total Equity
1,107
Total Liabilities & Shareholders' Equity
8,155

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Income Statement
2,017
Revenue
7,500
Cost of Revenue, Total
4,601
Gross Profit
2,899
Selling/General/ Administrative Expenses, Total
1,622
Research & Development
26
Depreciation/Amortization
10
Restructing and asset impairmentExpense
153
Operating Income
1,088
Interest Income (Expense)
(306)
Investment Income (not financing related)
4
Income Before Tax
786
Income Tax - Total
250
Net Income
536

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