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Analysis and Interpretation of Profitability Balance sheets and income statements for Target Corporation follow. Income Statement For Fiscal Years Ended ($ millions) 2006 2005 2004

Analysis and Interpretation of Profitability Balance sheets and income statements for Target Corporation follow.

Income Statement
For Fiscal Years Ended ($ millions) 2006 2005 2004
Sales $ 51,271 $ 45,682 $ 40,928
Credit card revenues 1,349 1,157 1,097
Total revenues 52,620 46,839 42,025
Cost of sales 34,927 31,445 28,389
Selling, general and administrative expenses 11,185 9,797 8,657
Credit card expenses 776 737 722
Depreciation and amortization 1,409 1,259 1,098
Earnings before interest and income taxes 4,323 3,601 3,159
Net interest expense 463 570 556
Earnings before income taxes 3,860 3,031 2,603
Provisions for income taxes 1,452 1,146 984
Net earnings $ 2,408 $ 1,885 $ 1,619

Balance Sheet
($ millions, except footnotes) January 28, 2006 January 29, 2005
Assets
Cash and cash equivalents $ 1,648 $ 2,245
Credit card receivables 5,666 5,069
Inventory 5,838 5,384
Other current assets 1,253 1,224
Total current assets 14,405 13,922
Property and equipment
Land 4,449 3,804
Buildings and improvements 14,174 12,518
Fixtures and equipment 3,219 2,990
Computer hardware and software 2,214 1,998
Construction-in-progress 1,158 962
Accumulated depreciation (6,176) (5,412)
Property and equipment, net 19,038 16,860
Other noncurrent assets 1,552 1,511
Total assets $ 34,995 $ 32,293
Liabilities and shareholders' investment
Accounts payable $ 6,268 $ 5,779
Accrued and other current liabilities 2,567 1,937
Current portion of long-term debt and notes payable 753 504
Total current liabilities 9,588 8,220
Long-term debt 9,119 9,034
Deferred income taxes 851 973
Other noncurrent liabilities 1,232 1,037
Shareholders' investment
Common stock 73 74
Additional paid-in-capital 2,121 1,810
Retained earnings 12,013 11,148
Accumulated other comprehensive income (loss) (2) (3)
Total shareholders' investment 14,205 13,029
Total liabilities and shareholders' equity $ 34,995 $ 32,293

HINT: For Sales use "Total revenues" for your computations, when applicable.

(a) Compute net operating profit after tax (NOPAT) for 2006. Assume that the combined federal and statutory rate is: 38.3%. (Round your answer to the nearest whole number.) 2006 NOPAT = 2694 (do not need this answer)

(b) Compute net operating assets (NOA) for 2006 and 2005. 2006 NOA = $22,429.00 (do not need this answer) 2005 NOA = $20,322.00 (do not need this answer)

(c) Compute Targets RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2006. (Do not round until final answer. Round two decimal places. Do not use NOPM x NOAT to calculate RNOA.) 2006 RNOA =

2006 NOPM = Answer 5.12 (do not need this answer)

2006 NOAT =

(d) Compute net nonoperating obligations (NNO) for 2006 and 2005. 2006 NNO = 2005 NNO =

(e) Compute return on equity (ROE) for 2006. (Do not round until final answer. Round answer two decimal places.) 2006 ROE = Answer

(f) Infer the nonoperating return component of ROE for 2006. (Use answers from above to calculate. Round your answer to two decimal places.) 2006 nonoperating return = Answer

Specifically I need the ones in bold. I am not sure what I am doing wrong.

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