Identifying and Computing Net Operating Profit after Tax (NOPAT)

Following is the income statement for Home Depot Inc. for fiscal year 2015, ended January 31, 2016.

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Consolidated Income Statement For Fiscal Year Ended ($ millions) Jan. 31, 2016 Feb. 01, 2015 Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $88,519 $83,176 Cost of sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,254 54,787 Gross profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,265 28,389 Operating expenses Selling, general and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,801 16,280 Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,690 1,640 Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,491 17,920 Operating income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,774 10,469 Interest and investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (166) (337)

Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919 830 Interest and other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 753 493 Earnings before provision for income taxes. . . . . . . . . . . . . . . . . . . . . . . . . 11,021 9,976 Provision for income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,012 3,631 Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,009 $ 6,345 Compute net operating profit after tax (NOPAT) for the fiscal year ended January 2016, assuming a federal and state statutory tax rate of 37%.