Following is the income statement for Target Corporation.

(a) Compute Target's NOPBT - net operating profit before tax. (Hint: Treat Target's credit card revenues and related expenses as operating.)

Target Corporation (TGT)

(b) Assume that the combined federal and state statutory tax rate is \(39 \%\). Compute NOPAT for Target for 2008 .

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($ millions) Sales..... Net credit card revenues Total revenues.. 2008 $61.471 1,896 63,367 Cost of sales.... 41,895 Selling, general and administrative expenses 13.704 Credit card expenses... 837 Depreciation and amortization.... 1,659 Earnings from continuing operations before interest expense and income taxes. 5,272 Net interest expense 647 Earnings from continuing operations before income taxes. 4,625 Provision for income taxes.... 1,776 Net earnings.... 2,849