Compute Net Operating Profit after Tax

$ millions	Mar. 7, 2020	Feb. 15, 2019
Operating assets	$42,225	$40,934
Nonoperating assets	1,778	3,595
Total assets	$44,003	$44,529
Operating liabilities	$16,679	$16,047
Nonoperating liabilities	29,202	27,028
Total liabilities	$45,881	$43,075
Net sales	$108,203
Operating expense before tax	92,673
Net operating profit before tax (NOPBT)	15,530
Other expense	974
Income before tax	14,556
Tax expense	3,435
Net income	$11,121

Compute net operating assets for the years ended March 7, 2020, and February 15, 2019. Assume a statutory tax rate of 22%.

Round answers to the nearest whole number.

a. Compute NOPAT using the formula: NOPAT = Net income + NNE

Answer - $11,881 (correct)

b. Compute NOPAT using the formula: NOPAT = NOPBT Tax on operating profit

Answer - $12,113 (incorrect)