Selected balance sheet and income statement information for Home Depot follows.$ millionsJan. 31, 2016Feb. 01, 2015Operating assets$40,683$38,573Nonoperating assets2,2661,773Total assets42,94940,346Operating liabilities15,04313,552Nonoperating liabilities21,27517,157Total liabilities36,31830,709Sales89,234 Net operating profit before tax (NOPBT)12,124 Nonoperting expense before tax803 Tax expense4,001 Net income7,320 Round answers to two decimal places (ex: 0.12345 = 12.35%).a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 37%.Answer%b. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. Assume a statutory tax rate of 37%.NOPM Answer%NOAT Answer

Formulas to be used are as follows Return on net operating assets Net Income/ Average net operating…

Answered: Selected balance sheet and income…

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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Selected balance sheet and income statement information for Home Depot follows.

$ millions	Jan. 31, 2016	Feb. 01, 2015
Operating assets	$40,683	$38,573
Nonoperating assets	2,266	1,773
Total assets	42,949	40,346
Operating liabilities	15,043	13,552
Nonoperating liabilities	21,275	17,157
Total liabilities	36,318	30,709
Sales	89,234
Net operating profit before tax (NOPBT)	12,124
Nonoperting expense before tax	803
Tax expense	4,001
Net income	7,320

Round answers to two decimal places (ex: 0.12345 = 12.35%).

a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 37%.
Answer%

b. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. Assume a statutory tax rate of 37%.
NOPM Answer%
NOAT Answer

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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