Compute Net Operating Profit after Tax Refer to the balance sheet information below for Home Depot. $ millions Feb. 3, 2019 Jan. 28, 2018 Operating assets $27,446 $26,607 Nonoperating assets 1,156 2,337 Total assets $28,602 $28,944 Operating liabilities $10,841 $10,431 Nonoperating liabilities 18,981 17,568 Total liabilities $29,822 $27,999 Net sales $70,332 Operating expense before tax 60,237 Net operating profit before tax (NOPBT) 10,095 Other expense 633 Income before tax 9,462 Tax expense 2,233 Net income $7,229 Assume a statutory tax rate of 22%. a. Compute NOPAT for the year ended Feb. 3, 2019 using the formula: NOPAT = Net income + NNE Net income NNE NOPAT Answer Answer b. Compute NOPAT for the year ended Feb. 3, 2019 using the formula: NOPAT = NOPBT − Tax on operating profit NOPBT Tax on operating profit NOPAT Answer Answer
Compute Net Operating Profit after Tax Refer to the balance sheet information below for Home Depot. $ millions Feb. 3, 2019 Jan. 28, 2018 Operating assets $27,446 $26,607 Nonoperating assets 1,156 2,337 Total assets $28,602 $28,944 Operating liabilities $10,841 $10,431 Nonoperating liabilities 18,981 17,568 Total liabilities $29,822 $27,999 Net sales $70,332 Operating expense before tax 60,237 Net operating profit before tax (NOPBT) 10,095 Other expense 633 Income before tax 9,462 Tax expense 2,233 Net income $7,229 Assume a statutory tax rate of 22%. a. Compute NOPAT for the year ended Feb. 3, 2019 using the formula: NOPAT = Net income + NNE Net income NNE NOPAT Answer Answer b. Compute NOPAT for the year ended Feb. 3, 2019 using the formula: NOPAT = NOPBT − Tax on operating profit NOPBT Tax on operating profit NOPAT Answer Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Compute
Refer to the balance sheet information below for Home Depot.
| $ millions | Feb. 3, 2019 | Jan. 28, 2018 |
|---|---|---|
| Operating assets | $27,446 | $26,607 |
| Nonoperating assets | 1,156 | 2,337 |
| Total assets | $28,602 | $28,944 |
| Operating liabilities | $10,841 | $10,431 |
| Nonoperating liabilities | 18,981 | 17,568 |
| Total liabilities | $29,822 | $27,999 |
| Net sales | $70,332 | |
| Operating expense before tax | 60,237 | |
| Net operating profit before tax (NOPBT) | 10,095 | |
| Other expense | 633 | |
| Income before tax | 9,462 | |
| Tax expense | 2,233 | |
| Net income | $7,229 |
Assume a statutory tax rate of 22%.
a. Compute NOPAT for the year ended Feb. 3, 2019 using the formula: NOPAT = Net income + NNE
| Net income | NNE | NOPAT | |
|---|---|---|---|
| Answer | Answer |
b. Compute NOPAT for the year ended Feb. 3, 2019 using the formula: NOPAT = NOPBT − Tax on operating profit
| NOPBT | Tax on operating profit | NOPAT | |
|---|---|---|---|
| Answer | Answer |
|
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