b. Compute GoPro's net operating profit margin (NOPM) for each year.Round answers to one decimal place. (Ex: 0.2345 = 23.5%)2014201343.7% *40 % *c. Compute GoPro's return on net operating assets (RNOA) for 2014.Round answers to one decimal place. (Ex: 0.2345 = 23.5%)201410% * Computing NOPAT, NOPM and RNOASelected information from the financial statements of GoPro, Inc. is provided below:($ thousands)RevenueOperating incomeNet interest expense and other nonoperating expenseNet incomeOperating assetsOperating liabilities20142013$1,392,450 $984,725187,035 98,7036,0327,357125,888 60,758815,643 439,716276,487 254,227Assume a statutory tax rate of 35%.a. Compute GoPro's net operating profit after taxes (NOPAT) for 2014 and 2013.Round answers to the nearest whole number.2014 $ 81,827 *2013 $39,492 *

Net operating profit margin indicates the manner in which the assets are utilized to generate…

Answered: Computing NOPAT, NOPM and RNOA Selected…

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 and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,480 $2,575 Net income 2,395 2,435 Total assets 13,561 13,383 $15,102 Equity 2,723 2,929 2,929 Net operating profit after tax (NOA) 7,982 8,516 9,080 Treasury stock 18,033 16,668 14,784 Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). b. Adjust equity and total assets for the amount of treasury stock. Using these restated numbers, recompute RNOA, ROA and ROE for both years.Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).
Compute and Compare ROE, ROA, and RNOA Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow ($thousands). KLA-Tencor Average Balance Sheet 2017-2018 $1,473,464 $2.583,930 -$2,627,235.5 $1,518,371 Operating assets Nonoperating assets Operating labilities Nonoperating abis Equity + -$2,948,529 Check OS 05 KLA-Tencor Income Statement 2018 $802,265 ė $653,666- Note: Assume a statutory tax rate of 22%. a. Compute return on equity (ROE). Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE. Denominator Numerator ROE $81,263 05 Operating expenses Tax expense b. Compute return on assets (ROA). Note: 1. Select the appropriate numerator and denominator used to compute ROA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROA. Numerator Denominator ROA -$2.499.507 +…
ss
Selected balance sheet and income statement information for Home Depot follows. $ millions Operating assets Jan. 31, 2016 Feb. 01, 2015 $40,333 $38,223 Nonoperating assets 2,216 1,723 Total assets 42,549 39,946 Operating liabilities 14,918 13,427 Nonoperating liabilities 21,315 17,197 Total liabilities 36,233 30,624 Total stockholders' equity 6.316 9.322 Sales 88,519 Net operating profit before tax (NOPBT) 11,774 Non-operating expense before tax 753 Tax expense 4,012 Net income 7,009 Compute the return on equity for the year ended January 31, 2016. You want your all-equity (no debt) firm to provide a return on equity of 13.5%. If total assets are $375,000, how much must be generated in net income to make this target? a. $41,234 b. $43,405 c. $45,689 d. $48,094 e. $50,625 For the FY 2016, Alpha Company had net sales of $950,000 and a net income of $65,000, paid income taxes of $30,000, and had before-tax interest expense of $15,000. Use this information to determine the: 1. Times…
Using the following selected items from the comparative balance sheet of Oriole Products.Determine the horizontal analysis. (Round percentages to 2 decimal places, e.g. 12.21%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) ORIOLEPRODUCTSComparative Balance SheetDecember 31 2014 2013 Horizontal analysis Amount Percentage Amount Percentage Current assets $110,880 enter percentages % $128,216 enter percentages % Long-term assets 174,240 enter percentages % 117,304 enter percentages % Total assets 3,168,000 enter percentages % 2,728,000 enter percentages % Determine the vertical analysis. (Round percentages to 1 decimal place, e.g. 12.2%.) ORIOLEPRODUCTSComparative Balance SheetDecember 31 2014 2013 Vertical analysis Amount Percentage Amount Percentage Current assets $110,880…
PSA12.1 Here are comparative statement data for Spencer Ltd and Forrester Lnd, two competito All data relating to the statement of financial position are as at 30 June, the end of the reporting period for both entities. SPENCER LTD FORRESTER LTD 2016 2015 2016 2015 Net sales $1 250 000 $410 000 Cost of sales 690 000 257 000 Operating expenses Finance costs 321 000 62 000 6 000 1 200 Income tax expense Profit 69 900 26 940 163 100 62 860 Current assets 325 975 $ 312 410 S 180 000 188 000 Non-current assets Current liabilities 521 310 500 000 240 000 216 000 79 595 75 815 36 000 32 000 Non-current liabilities 108 500 90 000 27 000 24 000 Share capital, $10 each Retained earnings 500 000 500 000 320 000 300 000 159 190 40 000 146 595 45 000 Required Comment on the relative profitability of the entities (2 comments) by calculating the profit margin, return on assets and the asset turnover for both entities.
Use the following information to answer questions 1 - 8 Consider the following abbreviated financial statements for Xinghua: XINGHUA 2014 and 2015 Partial Balance Sheets Assets Liabilities and Owners Equity 2014 2015 2014 2015 Current assets $ 924 $ 1,002 Current liabilities $ 370 $ 428 Net fixed assets 3,917 4,556 Long-term debt 2, 006 2, 142 Equity 2,465 2,988 XINGHUA 2015 Income Statement Sales $ 11,295 Costs 5,535 Depreciation 1,020 Interest paid 180 The tax rate is 35%. Long term debt trades at 128% of par. The firm has 500 shares outstanding. Free Cash Flow to the Firm and the Free Cash Flow to Equity are both expected to grow at 2% forever. The weighted average cost of capital is 16%. The cost of equity is 24%.1. What is the change in net working capital for 2015? $ 2. What is the change in gross fixed assets, i. e. capital expenditures, for 2015? $_ What is the Net Income for 2015? $ 3. 4. What is the Free Cash Flow to the Firm for 2015? $ What is the Value of the Firm…
You are required to calculate:1. Liquidity ratios 2. Solvency rations 3. Profitability ratios For the selected companies and shortly write your comments and findings.

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