Question
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
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 29, 2005 |
Net sales | $14,913,483 |
Cost of sales, including buying and occupancy costs | 11,398,656 |
Selling, general and administrative expenses | 2,500,119 |
Provision (credit) for computer intrusion related costs | - |
Interest expense (revenue), net | 25,757 |
Income from continuing operations before provision for income taxes | 988,951 |
Provision for income taxes | 379,252 |
Income from continuing operations | 609,699 |
Gain/(loss) from discontinued operations, net of income taxes | - |
Net income | $ 609,699 |
U.S. federal statutory income tax rate | 35.0% |
Effective state income tax rate | 4.3% |
Impact of foreign operation | -0.4% |
All other | -0.4% |
Worldwide effective income tax rate | 38.5% |
Compute TJX's NOPAT for 2005 using its income tax footnote disclosure. (The Federal and State tax rate for 2005 as reported by TJX's tax footnote is: 39.3%). Round to the nearest whole number. 2005 NOPAT = $Answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started