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Identify and Compute NOPAT Following is the income statement for Lowe’s Companies Inc. LOWE’S COMPANIES INC.     Consolidated Statement of Earnings     Twelve Months Ended (In millions)   Feb. 1, 2019 Net sales   $142,618 Cost of sales   96,802 Gross margin   45,816 Expenses     Selling, general and administrative   34,826 Depreciation and amortization   2,954 Operating income   8,036 Interest expense, net   1,248 Pretax earnings   6,788 Income tax provision   2,160 Net earnings   $4,628 Compute its net operating profit after tax (NOPAT) for the 12 months ended February 1, 2019, assuming a 22% total statutory tax rate. Note: Round your answer to the nearest whole dollar (millions).

Identify and Compute NOPAT Following is the income statement for Lowe’s Companies Inc. LOWE’S COMPANIES INC.     Consolidated Statement of Earnings     Twelve Months Ended (In millions)   Feb. 1, 2019 Net sales   $142,618 Cost of sales   96,802 Gross margin   45,816 Expenses     Selling, general and administrative   34,826 Depreciation and amortization   2,954 Operating income   8,036 Interest expense, net   1,248 Pretax earnings   6,788 Income tax provision   2,160 Net earnings   $4,628 Compute its net operating profit after tax (NOPAT) for the 12 months ended February 1, 2019, assuming a 22% total statutory tax rate. Note: Round your answer to the nearest whole dollar (millions).

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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Identify and Compute NOPAT
Following is the income statement for Lowe’s Companies Inc.

LOWE’S COMPANIES INC.    
Consolidated Statement of Earnings    
Twelve Months Ended (In millions)   Feb. 1, 2019
Net sales   $142,618
Cost of sales   96,802
Gross margin   45,816
Expenses    
Selling, general and administrative   34,826
Depreciation and amortization   2,954
Operating income   8,036
Interest expense, net   1,248
Pretax earnings   6,788
Income tax provision   2,160
Net earnings   $4,628

Compute its net operating profit after tax (NOPAT) for the 12 months ended February 1, 2019, assuming a 22% total statutory tax rate.
Note: Round your answer to the nearest whole dollar (millions).

 

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