Compute RNOA with Disaggregation Refer to the balance sheet information below for Home Depot. Feb. 3, 2019 Jan. 28, 2018 $14,357 $13,918 1,222 Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Net sales $ millions Operating expense before tax Net operating profit before tax (NOPBT) Other expense Income before tax Tax expense Net income $ + 605 $14,962 $5,671 9,929 $15,600 $36,789 31,509 a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 22%. Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 RNOA. Numerator Denominator 0 $ 5,280 331 4,949 1,168 $3,781 $15,140 $5,456 9,190 $14,646 0 RNOA %

Compute RNOA with Disaggregation Refer to the balance sheet information below for Home Depot. Feb. 3, 2019 Jan. 28, 2018 $14,357 $13,918 1,222 Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Net sales $ millions Operating expense before tax Net operating profit before tax (NOPBT) Other expense Income before tax Tax expense Net income $ + 605 $14,962 $5,671 9,929 $15,600 $36,789 31,509 a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 22%. Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 RNOA. Numerator Denominator 0 $ 5,280 331 4,949 1,168 $3,781 $15,140 $5,456 9,190 $14,646 0 RNOA %

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Compute RNOA with Disaggregation
Refer to the balance sheet information below for Home Depot.
Feb. 3, 2019 Jan. 28, 2018
$14,357
$13,918
605
1,222
$14,962
$15,140
$5,671
$5,456
9,929
9,190
$15,600
$14,646
$36,789
31,509
5,280
331
$ millions
Operating assets
Nonoperating assets
Total assets
Operating liabilities
Nonoperating liabilities
Total liabilities
Net sales
Operating expense before tax
Net operating profit before tax (NOPBT)
Other expense
Income before tax
Tax expense
Net income
a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 22%.
Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 RNOA.
Numerator
Denominator
♦
4,949
1,168
$3,781
0 $
♦
0
RNOA
%

b. Disaggregate RNOA into components of profitability (NOPM) and productivity (NOAT). Assume a statutory tax rate of 22%.
Note: 1. Select the appropriate numerator and denominator used to compute NOPM from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 NOPM.
Numerator
Denominator
$
0 $
$
0
0 $
Note: 1. Select the appropriate numerator and denominator used to compute NOAT from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 NOAT.
Numerator
Denominator
ΝΟΡΜ
0
%
NOAT

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