Refer to the balance sheet information below for Home Depot. Assume a statutory tax rate of 22%. $ millions Operating assets Non-operating assets Total assets Operating liabilities Non-operating liabilities Total liabilities Net sales Operating expense before tax Net operating profit before tax (NOPBT) Other expense Income before tax Tax expense Net earnings Feb. 3, 2012 42,225 1,778 44,003 16,679 29,202 45,881 108,203 92,673 15,530 974 14,556 3,435 11,121 Jan. 28, 20Y1 40,934 3,595 44,529 16,047 27,028 43,075 Required: a. Compute net operating assets for the years ended February 3, 20Y2, and January 28, 20Y1 b. Compute NOPAT using the formula: NOPAT = NOPBT - Tax on operating profit c. Compute return on net operating assets (RNOA) d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA
Refer to the balance sheet information below for Home Depot. Assume a statutory tax rate of 22%. $ millions Operating assets Non-operating assets Total assets Operating liabilities Non-operating liabilities Total liabilities Net sales Operating expense before tax Net operating profit before tax (NOPBT) Other expense Income before tax Tax expense Net earnings Feb. 3, 2012 42,225 1,778 44,003 16,679 29,202 45,881 108,203 92,673 15,530 974 14,556 3,435 11,121 Jan. 28, 20Y1 40,934 3,595 44,529 16,047 27,028 43,075 Required: a. Compute net operating assets for the years ended February 3, 20Y2, and January 28, 20Y1 b. Compute NOPAT using the formula: NOPAT = NOPBT - Tax on operating profit c. Compute return on net operating assets (RNOA) d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vishano
Transcribed Image Text:Refer to the balance sheet information below for Home Depot. Assume a statutory tax rate
of 22%.
$ millions
Operating assets
Non-operating assets
Total assets
Operating liabilities
Non-operating liabilities
Total liabilities
Net sales
Operating expense before tax
Net operating profit before tax (NOPBT)
Other expense
Income before tax
Tax expense
Net earnings
Feb. 3, 2012
42,225
1,778
44,003
16,679
29,202
45,881
108,203
92,673
15,530
974
14,556
3,435
11,121
Jan. 28, 20Y1
40,934
3,595
44,529
16,047
27,028
43,075
Required:
a. Compute net operating assets for the years ended February 3, 20Y2, and January 28,
20Y1
b. Compute NOPAT using the formula: NOPAT = NOPBT - Tax on operating profit
c. Compute return on net operating assets (RNOA)
d. Disaggregate RNOA into components of profitability and productivity and show that the
product of the two components equals RNOA
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education