Following is the income statement for Nordstrom Company. Assume that the combined federal and state statutory tax rate is 37%. ($ millions) 2016 Net sales $14,095 Credit card revenues 342 Total revenues 14,437 Cost of sales and related buying and occupancy costs (9,168) Selling, general and administrative expenses (4,168) Earnings before interest and income taxes 1,101 Interest expense, net (125) Earnings before income taxes 976 Income tax expense (376) Net earnings $ 600 Compute NOPAT for Nordstrom for 2016. (Hint: Treat credit card revenues as operating.) a. $ 679 million b. $1,136 million c. $ 851 million d. $ 725 million

Following is the income statement for Nordstrom Company. Assume that the combined federal and state statutory tax rate is 37%. ($ millions) 2016 Net sales $14,095 Credit card revenues 342 Total revenues 14,437 Cost of sales and related buying and occupancy costs (9,168) Selling, general and administrative expenses (4,168) Earnings before interest and income taxes 1,101 Interest expense, net (125) Earnings before income taxes 976 Income tax expense (376) Net earnings $ 600 Compute NOPAT for Nordstrom for 2016. (Hint: Treat credit card revenues as operating.) a. $ 679 million b. $1,136 million c. $ 851 million d. $ 725 million

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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Subject - Acounting
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