Question
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
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) | 2010 | 2009 | 2008 |
Sales | $ 8,258 | $ 8,272 | $ 8,828 |
Credit card revenues | 369 | 301 | 252 |
Total revenues | 8,627 | 8,573 | 9,080 |
Cost of sales and related buying and occupancy costs | (5,328) | (5,417) | (5,526) |
Selling, general and administrative expenses | |||
Retail | (2,109) | (2,103) | (2,130) |
Credit | (356) | (274) | (177) |
Earnings before interest and income taxes | 834 | 779 | 1,247 |
Net interest expense | (138) | (131) | (74) |
Earnings before income taxes | 696 | 648 | 1,173 |
Income tax expense | (255) | (247) | (458) |
Net earnings | $ 441 | $ 401 | $ 715 |
NORDSTROM, INC. Consolidated Balance Sheets | ||
---|---|---|
($ millions) | January 30, 2010 | January 31, 2009 |
Assets | ||
Current Assets | ||
Cash and cash equivalents | $ 795 | $ 72 |
Accounts receivable, net | 2,035 | 1,942 |
Merchandise inventories | 898 | 900 |
Current deferred tax assets, net | 238 | 210 |
Prepaid expenses and other | 88 | 93 |
Total current assets | 4,054 | 3,217 |
Land, buildings and equipment, net | 2,242 | 2,221 |
Goodwill | 53 | 53 |
Other assets | 230 | 170 |
Total assets | $ 6,579 | $ 5,661 |
Liabilities and Shareholders' Equity | ||
Current liabilities | ||
Accounts payable | $ 726 | $ 563 |
Accrued salaries, wages and related benefits | 336 | 214 |
Other current liabilities | 596 | 525 |
Current portion of long-term debt | 356 | 299 |
Total current liabilities | 2,014 | 1,601 |
Long-term debt, net | 2,257 | 2,214 |
Deferred property incentives, net | 469 | 435 |
Other liabilities | 267 | 201 |
Shareholders' equity | ||
Common stock, no par value | 1,066 | 997 |
Retained earnings | 525 | 223 |
Accumulated other comprehensive income (loss) | (19) | (10) |
Total shareholders' equity | 1,572 | 1,210 |
Total liabilities and shareholders' equity | $ 6,579 | $ 5,661 |
For Sales use "Total revenues" for your computations, when applicable.
(a) Compute net operating profit after tax (NOPAT) for 2010. Assume that the combined federal and statutory rate is: 37.0%. (Round your answer to the nearest whole number.)
2010 NOPAT = $_________
(b) Compute net operating assets (NOA) for 2010 and 2009.
2010 NOA = $___________
2009 NOA = $___________
(c) Compute RNOA, net operating profit margin (NOPM), and net operating asset turnover (NOAT) for 2010. Do not use NOPM x NOAT to calculate RNOA. (Do not round until final answers. Round to two decimal places.)
2010 RNOA = _________%
2010 NOPM = _________%
2010 NOAT = ________
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