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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
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