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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, 2011
Net sales $21,942,193
Cost of sales, including buying and occupancy costs 16,040,461
Selling, general and administrative expenses 3,710,053
Provision (credit) for computer intrusion related costs (11,550)
Interest expense (revenue), net 39,137
Income from continuing operations before provision for income taxes 2,164,092
Provision for income taxes 824,562
Income from continuing operations 1,339,530
Gain from discontinued operations, net of income taxes 3,611
Net income $ 1,343,141
U.S. federal statutory income tax rate 35.0%
Effective state income tax rate 4.1%
Impact of foreign operation -0.5%
All other -0.5%
Worldwide effective income tax rate 38.1%

a. Compute TJX's 2010 statutory tax rate using its income tax footnote disclosure.

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

39..1%

b. Compute TJX's NOPAT for fiscal year 2010 using its tax rate from part a.

Round to the nearest whole number.

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