Balance sheets and income statements for Costco Wholesale Corporation follow.

Costco Wholesale Corporation
Consolidated Statements of Earnings
For Fiscal Years Ended ($ millions)	September 2, 2018
Total revenue	$142,791
Operating expenses
Merchandise costs	124,367
Selling, general and administrative	13,876
Preopening expenses	1,283
Operating Income	3,265
Other (income) expense
Interest expense	159
Interest income and other, net	(121)
Income before income taxes	3,227
Provision for income taxes	1,263
Net income including noncontrolling interests	1,964
Net income attributable to noncontrolling interests	(45)
Net income attributable to Costco	$1,919

Costco Wholesale Corporation
Consolidated Balance Sheets
($ millions, except par value and share data)	September 2, 2018	September 3, 2017
Current assets
Cash and cash equivalents	$6,055	$5,761
Short-term investments	2,419	1,233
Receivables, net	1,669	1,432
Merchandise inventories	11,040	11,049
Other current assets	1,536	272
Total current assets	22,719	19,747
Net property and equipment	20,896	18,161
Other assets	860	869
Total assets	$44,475	$38,777
Current liabilities
Accounts payable	$11,237	$9,608
Accrued salaries and benefits	2,994	3,918
Accrued member rewards	1,057	2,176
Deferred membership fees	2,839	1,498
Other current liabilities	3,014	2,725
Total current liabilities	21,141	19,925
Long-term debt	7,702	7,788
Other liabilities	2,529	1,200
Total liabilities	31,372	28,913
Equity
Preferred stock, $0.01 par value:	0	0
Common stock, $0.01 par value:	4	4
Additional paid-in-capital	6,107	4,585
Accumulated other comprehensive loss	(1,199)	(1,014)
Retained earnings	7,887	5,988
Total Costco stockholders equity	12,799	9,563
Noncontrolling interests	304	301
Total equity	13,103	9,864
Total liabilities and equity	$44,475	$38,777
Combined federal and state statutory tax rate	22%

(a) Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22%.

	NOPAT

(b) Compute net operating assets (NOA) for 2018 and 2017.

	Year	NOA
	2018
	2017

(c) Compute Costcos RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018.

	Numerator	Denominator	RNOA
	Total revenueTax expenseInterest expense netNet incomeNet income (adjusted)NOPATNet nonoperating expense (NNE)Average assetsAverage equityAverage operating assetsAverage nonoperating assetsAverage operating liabilitiesAverage nonoperating liabilitiesAverage net operating assets (NOA)Average net nonoperating obligations (NNO)	Total revenueTax expenseInterest expense netNet incomeNet income (adjusted)NOPATNet nonoperating expense (NNE)Average assetsAverage equityAverage operating assetsAverage nonoperating assetsAverage operating liabilitiesAverage nonoperating liabilitiesAverage net operating assets (NOA)Average net nonoperating obligations (NNO)

	Numerator	Denominator	NOPM
	Total revenueTax expenseInterest expense netNet incomeNet income (adjusted)NOPATNet nonoperating expense (NNE)Average assetsAverage equityAverage operating assetsAverage nonoperating assetsAverage operating liabilitiesAverage nonoperating liabilitiesAverage net operating assets (NOA)Average net nonoperating obligations (NNO)	Total revenueTax expenseInterest expense netNet incomeNet income (adjusted)NOPATNet nonoperating expense (NNE)Average assetsAverage equityAverage operating assetsAverage nonoperating assetsAverage operating liabilitiesAverage nonoperating liabilitiesAverage net operating assets (NOA)Average net nonoperating obligations (NNO)

	Numerator	Denominator	NOAT
	Total revenueTax expenseInterest expense netNet incomeNet income (adjusted)NOPATNet nonoperating expense (NNE)Average assetsAverage equityAverage operating assetsAverage nonoperating assetsAverage operating liabilitiesAverage nonoperating liabilitiesAverage net operating assets (NOA)Average net nonoperating obligations (NNO)	Total revenueTax expenseInterest expense netNet incomeNet income (adjusted)NOPATNet nonoperating expense (NNE)Average assetsAverage equityAverage operating assetsAverage nonoperating assetsAverage operating liabilitiesAverage nonoperating liabilitiesAverage net operating assets (NOA)Average net nonoperating obligations (NNO)

(d) Compute net nonoperating obligations (NNO) for 2018 and 2017. Confirm the relation: NOA = NNO + Total equity.

	Year	NNO
	2018
	2017

	Year	NNO	Total equity	NOA
	2018
	2017

(e) Compute return on equity (ROE) for 2018.

	Numerator	Denominator	ROE
	Total revenueTax expenseInterest expense netNet incomeNet income (adjusted)NOPATNet nonoperating expense (NNE)Average assetsAverage equityAverage operating assetsAverage nonoperating assetsAverage operating liabilitiesAverage nonoperating liabilitiesAverage net operating assets (NOA)Average net nonoperating obligations (NNO)	Total revenueTax expenseInterest expense netNet incomeNet income (adjusted)NOPATNet nonoperating expense (NNE)Average assetsAverage equityAverage operating assetsAverage nonoperating assetsAverage operating liabilitiesAverage nonoperating liabilitiesAverage net operating assets (NOA)Average net nonoperating obligations (NNO)

(f) Infer the nonoperating return component of ROE for 2018.

	ROE	RNOA	Nonoperating component of ROE

Please answer all parts of the question.