Refer to the balance sheet information below for Home Depot. $ millions Feb. 3, 2019 Jan. 28, 2018 Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Net sales $13,837 $13,414 583 1,178 $14,420 $14,592 $5,466 $5,259 9,569 8,857 $15,035 $14,116 $35,458 Operating expense before tax 30,369 Net operating profit before tax (NOPBT) 5,089 Other expense 319 Income before tax Tax expense Net income 4,770 1,126 $3,644 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. Denominator Average NOA NOPAT $ Numerator $ RNOA 8,263 0% 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. Denominator Numerator NOPAT $ Revenue NOPM + 35,458 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. Denominator Numerator Revenue $ Average NOA 35,458 $ NOAT ÷ 8,263 4.29
Refer to the balance sheet information below for Home Depot. $ millions Feb. 3, 2019 Jan. 28, 2018 Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Net sales $13,837 $13,414 583 1,178 $14,420 $14,592 $5,466 $5,259 9,569 8,857 $15,035 $14,116 $35,458 Operating expense before tax 30,369 Net operating profit before tax (NOPBT) 5,089 Other expense 319 Income before tax Tax expense Net income 4,770 1,126 $3,644 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. Denominator Average NOA NOPAT $ Numerator $ RNOA 8,263 0% 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. Denominator Numerator NOPAT $ Revenue NOPM + 35,458 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. Denominator Numerator Revenue $ Average NOA 35,458 $ NOAT ÷ 8,263 4.29
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Refer to the balance sheet information below for Home Depot.
$ millions
Feb. 3, 2019
Jan. 28,
2018
Operating assets
Nonoperating assets
Total assets
Operating liabilities
Nonoperating liabilities
Total liabilities
Net sales
$13,837 $13,414
583 1,178
$14,420 $14,592
$5,466 $5,259
9,569 8,857
$15,035 $14,116
$35,458
Operating expense before tax
30,369
Net operating profit before tax (NOPBT)
5,089
Other expense
319
Income before tax
Tax expense
Net income
4,770
1,126
$3,644
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.
Denominator
Average NOA
NOPAT
$
Numerator
$
RNOA
8,263
0%
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.
Denominator
Numerator
NOPAT
$
Revenue
NOPM
+
35,458
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.
Denominator
Numerator
Revenue
$
Average NOA
35,458 $
NOAT
÷
8,263
4.29
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