Compute NOPAT Using Tax Rates from Tax Footnote

The income statement for The TJX Companies, Inc., follows.

THE TJX COMPANIES, INC.

Consolidated Statements of Income

Fiscal Year Ended ($ thousands)

January 28, 2006

Net sales $16,057,935

Cost of sales, including buying and occupancy costs 12,295,016

Selling, general and administrative expenses 2,723,960

Provision (credit) for computer intrusion related costs -

Interest expense (revenue), net 29,632

Income from continuing operations before provision for income taxes 1,009,327

Provision for income taxes 318,904

Income from continuing operations 690,423

Gain from discontinued operations, net of income taxes -

Net income $ 690,423

U.S. federal statutory income tax rate 35.0%

Effective state income tax rate 3.9%

Impact of foreign operation 0.5%

All other -7.8%

Worldwide effective income tax rate 31.6%

a. Compute TJX's 2005 statutory tax rate using its income tax footnote disclosure.

Round answer to one decimal place (ex: 0.2345 = 23.5%)

Answer

0

%

b. Compute TJX's NOPAT for fiscal year 2005 using its tax rate from part a.

Round to the nearest whole number.

$Answer

0