Compute, Disaggregate, and Interpret RNOA of Competitors Selected balance sheet and income statement information for the clothing retailers, Abercrombie & Fitch and The GAP, Inc., follows.

Company ($ millions)	Ticker	2009 Sales	2009 NOPAT	2009 Net Operating Assets	2008 Net Operating Assets
Abercrombie & Fitch	ANF	$3,540	$265	$1,194	$970
The GAP	GPS	$14,526	$945	$2,681	$2,523

(a) Compute the 2009 return on net operating assets (RNOA) for each company. (Do not round until your final answer. Round your answers to two decimal places.) (Do not use RNOA=NOPM X NOAT to calculate.)

Company ($ millions)	RNOA
Abercrombie & Fitch	Answer%
The GAP	Answer%

(b) Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for each company. (Do not round until your final answer. Round your answers to two decimal places.)

Company	NOPM	NOAT
Abercrombie & Fitch	Answer%	Answer
The GAP	Answer%	Answer

(c) Which of the following statements about business models bests explains differences between the RNOA for ANF and GPS?

GPS reports a higher RNOA because it is a much larger company.

GPS reports a higher RNOA because its asset turnover rate is substantially higher than ANFs.

GPS reports a higher RNOA because both its net operating profit margin and operating asset turnover are higher than ANF.

ANF reports a higher RNOA because its NOA is about one-fourth that for GPS.