9 eBook 6 Print Question 9 Incorrect Mark 0.00 out of 11.00 P Flag question Analysis and Interpretation of ROE and RNOA with No Noncontrolling Interest Balance sheets and income statements for Nordstrom, Inc., follow. Refer to these financial statements to answer the requirements. Nordstrom, Inc. Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) 2013 2012 2011 Net Sales $11,762 $10,497 $9,310 Credit card revenues 386 380 390 Total revenues 12,148 10,877 9,700 Cost of sales and related buying and occupancy costs (7,432) (6,592) (5,897) Selling, general and administrative expenses Retail (3,166) (2,807) (2,412) Credit (205) (229) (273) Earnings before interest and income taxes 1,345 1,249 1,118 Interest expense, net (160) (130) (127) Earnings before income taxes 1,185 1,119 991 Income tax expense (450) (436) (378) Net earnings $ 735 $ 683 $ 613 Nordstrom, Inc. Consolidated Balance Sheets Nordstrom, Inc. Consolidated Balance Sheets ($ millions) February 2, 2013 January 28, 2012 Assets Current assets Cash and cash equivalents $ 1,285 $1,877 Accounts receivable, net 2,129 2,033 Merchandise inventories 1,360 1,148 Current deferred tax assets, net 227 220 Prepaid expenses and other 80 282 Total current assets 5,081 5,560 Land, buildings and equipment, net 2,579 2,469 Goodwill 175 175 Other assets 254 287 Total assets $ 8,089 $ 8,491 Liabilities and equity Current liabilities Accounts payable $ 1,011 $ 917 Accrued salaries, wages and related benefits 404 388 Other current liabilities 804 764 Current portion of long-term debt 7 506 Total current liabilities 2,226 2,575 Long-term debt, net 3,124 3,141 Deferred income taxes and other liabilities 485 500 Other liabilities 341 319 Shareholders' equity Common stock, no par value: 1,000 shares authorized; 1,645 1,484 197.0 and 207.6 shares issued and outstanding Retained earnings 315 517 Accumulated other comprehensive loss (47) (45) Total shareholders' equity 1,913 1,956 Total liabilities and shareholders' equity $8,089 $ 8,491 HINT: For Sales use "Total revenues" for your computations, when applicable. (a) Compute net operating profit after tax (NOPAT) for 2013. Assume that the combined federal and state statutory tax rate is 37%. (Round to the nearest whole number.) HINT: For Sales use "Total revenues" for your computations, when applicable. (a) Compute net operating profit after tax (NOPAT) for 2013. Assume that the combined federal and state statutory tax rate is 37%. (Round to the nearest whole number.) 2013 NOPAT = $ 0 X (b) Compute net operating assets (NOA) for 2013 and 2012. 2013 NOA = $ 5,841 X 2012 NOA = $ 5,861 (c) Compute RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2013. Do not use NOPM x NOAT to calulate RNOA. (Do not round until your final answer. Round answer to two decimal places.) 2013 RNOA = 14.82 X % 2013 NOPM - 6.98 X % 2013 NOAT = 2.01 X (d) Compute net nonoperating obligations (NNO) for 2013 and 2012. 2013 NNO = $ 0 X 2012 NNO = $ 0 X (e) Compute return on equity (ROE) for 2013. (Round answer to two decimal places.) 2013 ROE = 40 X % (f) Infer the nonoperating return component of ROE for 2013. (Use above answers to calculate. Round answer to two decimal places.) 2013 nonoperating return = X % 0