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

$ millions	Jan. 31, 2016	Feb. 01, 2015
Total assets	$42,549	$39,946
Total liabilities	36,233	30,624
Sales	88,519
Net income	7,009

Compute the return on equity for the year ended January 31, 2016. Round answer to two decimal places (ex: 0.12345 = 12.35%)

2. Apply DuPont Disaggregation of ROE Selected balance sheet and income statement information for Home Depot follows.

$ millions	Jan. 31, 2016	Feb. 01, 2015
Total assets	$42,949	$40,346
Total liabilities	36,318	30,709
Sales	89,234
Net income	7,320

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

a. Compute ROE and disaggregate the ratio into its DuPont components of ROA and financial leverage. ROE: Answer% ROA: Answer% Financial leverage: Answer

b. Disaggregate ROA in to profitability and productivity components. Profit margin Answer% Asset turnover Answer

Compute Net Operating Assets Selected balance sheet and income statement information for Home Depot follows.

$ millions	Jan. 31, 2016	Feb. 01, 2015
Operating assets	$40,583	$38,473
Nonoperating assets	2,241	1,748
Total assets	42,824	40,221
Operating liabilities	15,018	13,527
Nonoperating liabilities	21,340	17,222
Total liabilities	36,358	30,749
Sales	88,944
Net operating profit before tax (NOPBT)	12,024
Nonoperting expense before tax	778
Tax expense	4,208
Net income	7,038

Compute net operating assets for the years ended January 31, 2016 and February 1, 2015. 2016 NOA $Answer 2015 NOA $Answer

Compute Net Operating Assets Selected balance sheet and income statement information for Home Depot follows.

$ millions	Jan. 31, 2016	Feb. 01, 2015
Operating assets	$40,583	$38,473
Nonoperating assets	2,241	1,748
Total assets	42,824	40,221
Operating liabilities	15,018	13,527
Nonoperating liabilities	21,340	17,222
Total liabilities	36,358	30,749
Sales	88,944
Net operating profit before tax (NOPBT)	12,024
Nonoperting expense before tax	778
Tax expense	4,208
Net income	7,038

Compute net operating assets for the years ended January 31, 2016 and February 1, 2015. 2016 NOA $Answer 2015 NOA $Answer

Compute Net Operating Assets Selected balance sheet and income statement information for Home Depot follows.

$ millions	Jan. 31, 2016	Feb. 01, 2015
Operating assets	$40,583	$38,473
Nonoperating assets	2,241	1,748
Total assets	42,824	40,221
Operating liabilities	15,018	13,527
Nonoperating liabilities	21,340	17,222
Total liabilities	36,358	30,749
Sales	88,944
Net operating profit before tax (NOPBT)	12,024
Nonoperting expense before tax	778
Tax expense	4,208
Net income	7,038

Compute net operating assets for the years ended January 31, 2016 and February 1, 2015. 2016 NOA $Answer 2015 NOA $Answer

Compute Net Operating Assets Selected balance sheet and income statement information for Home Depot follows.

$ millions	Jan. 31, 2016	Feb. 01, 2015
Operating assets	$40,583	$38,473
Nonoperating assets	2,241	1,748
Total assets	42,824	40,221
Operating liabilities	15,018	13,527
Nonoperating liabilities	21,340	17,222
Total liabilities	36,358	30,749
Sales	88,944
Net operating profit before tax (NOPBT)	12,024
Nonoperting expense before tax	778
Tax expense	4,208
Net income	7,038

Compute net operating assets for the years ended January 31, 2016 and February 1, 2015. 2016 NOA $Answer 2015 NOA $Answer