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) 2009 2008 2007 Sales $ 8,272 $ 8,828 $ 8,561 Credit card revenues 301 252 105 Total revenues 8,573 9,080 8,666 Cost of sales and related buying and occupancy costs (5,417) (5,526) (5,354) Selling, general and administrative expenses Retail (2,103) (2,130) (2,071) Credit (274) (177) (92) Earnings before interest and income taxes 779 1,247 1,149 Net interest expense (131) (74) (43) Earnings before income taxes 648 1,173 1,106 Income tax expense (247) (458) (428) Net earnings $ 401 $ 715 $ 678 NORDSTROM, INC. Consolidated Balance Sheets ($ millions) January 31, 2009 February 2, 2008 Assets $ 72 $ 358 1,942 1,788 900 956 Current Assets Cash and cash equivalents Accounts receivable, net Merchandise inventories Current deferred tax assets, net Prepaid expenses and other Total current assets Land, buildings and equipment, net Goodwill 210 181 93 78 3,217 2,221 3,361 1,983 53 53 Other assets 170 203 Total assets $ 5,661 $ 5,600 $ 563 $ 556 214 268 525 550 299 261 1,601 1,635 2,214 2,236 Liabilities and Shareholders' Equity Current liabilities Accounts payable Accrued salaries, wages and related benefits Other current liabilities Current portion of long-term debt Total current liabilities Long-term debt, net Deferred property incentives, net Other liabilities Shareholders' equity Common stock, no par value Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity 435 369 201 245 997 936 223 201 (10) 1,210 (22) 1,115 $ 5,600 $ 5,661 HINT: For Sales use "Total revenues" for your computations, when applicable. (a) Compute net operating profit after tax (NOPAT) for 2009. Assume that the combined federal and statutory rate is: 37.0%. (Round your answer to the nearest whole number.) 2009 NOPAT $ 0 X (b) Compute net operating assets (NOA) for 2009 and 2008. 2009 NOA = $ 3,651 2008 NOA = $ 3,254 (c) Compute RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2009. Do not use NOPM NOAT to calculate RNOA. (Do not round until your final answers. Round to two decimal places.) 2009 RNOA = 0 X % 2009 NOPM = 0 X % 2009 NOAT = 0 X (d) Compute net nonoperating obligations (NNO) for 2009 and 2008. 2009 NNO = $ 0 2008 NNO = $ 0 X (e) Compute return on equity (ROE) for 2009. (Round your answers to two decimal places. Do not round until your final answer.) 2009 ROE = 0 X % 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) 2009 2008 2007 Sales $ 8,272 $ 8,828 $ 8,561 Credit card revenues 301 252 105 Total revenues 8,573 9,080 8,666 Cost of sales and related buying and occupancy costs (5,417) (5,526) (5,354) Selling, general and administrative expenses Retail (2,103) (2,130) (2,071) Credit (274) (177) (92) Earnings before interest and income taxes 779 1,247 1,149 Net interest expense (131) (74) (43) Earnings before income taxes 648 1,173 1,106 Income tax expense (247) (458) (428) Net earnings $ 401 $ 715 $ 678 NORDSTROM, INC. Consolidated Balance Sheets ($ millions) January 31, 2009 February 2, 2008 Assets $ 72 $ 358 1,942 1,788 900 956 Current Assets Cash and cash equivalents Accounts receivable, net Merchandise inventories Current deferred tax assets, net Prepaid expenses and other Total current assets Land, buildings and equipment, net Goodwill 210 181 93 78 3,217 2,221 3,361 1,983 53 53 Other assets 170 203 Total assets $ 5,661 $ 5,600 $ 563 $ 556 214 268 525 550 299 261 1,601 1,635 2,214 2,236 Liabilities and Shareholders' Equity Current liabilities Accounts payable Accrued salaries, wages and related benefits Other current liabilities Current portion of long-term debt Total current liabilities Long-term debt, net Deferred property incentives, net Other liabilities Shareholders' equity Common stock, no par value Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity 435 369 201 245 997 936 223 201 (10) 1,210 (22) 1,115 $ 5,600 $ 5,661 HINT: For Sales use "Total revenues" for your computations, when applicable. (a) Compute net operating profit after tax (NOPAT) for 2009. Assume that the combined federal and statutory rate is: 37.0%. (Round your answer to the nearest whole number.) 2009 NOPAT $ 0 X (b) Compute net operating assets (NOA) for 2009 and 2008. 2009 NOA = $ 3,651 2008 NOA = $ 3,254 (c) Compute RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2009. Do not use NOPM NOAT to calculate RNOA. (Do not round until your final answers. Round to two decimal places.) 2009 RNOA = 0 X % 2009 NOPM = 0 X % 2009 NOAT = 0 X (d) Compute net nonoperating obligations (NNO) for 2009 and 2008. 2009 NNO = $ 0 2008 NNO = $ 0 X (e) Compute return on equity (ROE) for 2009. (Round your answers to two decimal places. Do not round until your final answer.) 2009 ROE = 0 X %