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Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowe's Companies Inc. Assume the statutory tax rate is 22%. Pretax Net Nonoperating Tax Expense Expense Average Net Operating Assets Company ($ millions) Ticker Sales NOPBT HD $108,203 $15,530 Home Depot $974 $3,435 Lowe's LOW 71,309 4,018 624 1,080 a. Compute the following measures for both companies. Measure Lowe's 1. Net operating profit (NOPAT) 2. Return on net operating assets (RNOA) 3. Net operating profit margin (NOPM) 4. Net operating asset turnover (NOAT) Rounding Instructions Round to nearest whole dollar Round percentage to one decimal place Round percentage to one decimal place Round amount to two decimal places. $25,217 20,326 Home Depot 12,095 * $ 48% x 11.2% x 4.29 ✔ 2,938 x 14.5% x 4.1% x 3.51 ✔

Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowe's Companies Inc. Assume the statutory tax rate is 22%. Pretax Net Nonoperating Tax Expense Expense Average Net Operating Assets Company ($ millions) Ticker Sales NOPBT HD $108,203 $15,530 Home Depot $974 $3,435 Lowe's LOW 71,309 4,018 624 1,080 a. Compute the following measures for both companies. Measure Lowe's 1. Net operating profit (NOPAT) 2. Return on net operating assets (RNOA) 3. Net operating profit margin (NOPM) 4. Net operating asset turnover (NOAT) Rounding Instructions Round to nearest whole dollar Round percentage to one decimal place Round percentage to one decimal place Round amount to two decimal places. $25,217 20,326 Home Depot 12,095 * $ 48% x 11.2% x 4.29 ✔ 2,938 x 14.5% x 4.1% x 3.51 ✔

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowe's Companies Inc. Assume the statutory tax rate is 22%. Average Net Operating Assets Company ($ millions) Ticker Pretax Net Nonoperating Tax Expense Expense $974 $3,435 624 1,080 Home Depot Sales NOPBT $108,203 $15,530 71,309 4,018 HD LOW $25,217 Lowe's 20,326 a. Compute the following measures for both companies. Measure Home Depot Lowe's 1. Net operating profit (NOPAT) 2. Return on net operating assets (RNOA) 3. Net operating profit margin (NOPM) 4. Net operating asset turnover (NOAT) Rounding Instructions Round to nearest whole dollar $ Round percentage to one decimal place Round percentage to one decimal place Round amount to two decimal places 12,095 * $ 48 % x 11.296 x S 4.29 ✔ 2,938 x 14.5% x 4.196 X 3.51 ✔
Transcribed Image Text:Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowe's Companies Inc. Assume the statutory tax rate is 22%. Average Net Operating Assets Company ($ millions) Ticker Pretax Net Nonoperating Tax Expense Expense $974 $3,435 624 1,080 Home Depot Sales NOPBT $108,203 $15,530 71,309 4,018 HD LOW $25,217 Lowe's 20,326 a. Compute the following measures for both companies. Measure Home Depot Lowe's 1. Net operating profit (NOPAT) 2. Return on net operating assets (RNOA) 3. Net operating profit margin (NOPM) 4. Net operating asset turnover (NOAT) Rounding Instructions Round to nearest whole dollar $ Round percentage to one decimal place Round percentage to one decimal place Round amount to two decimal places 12,095 * $ 48 % x 11.296 x S 4.29 ✔ 2,938 x 14.5% x 4.196 X 3.51 ✔
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