Compute RNOA with Disaggregation
 

$ millions	May. 10, 2020	Feb. 20, 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

Round all answers to two decimal places (ex: 0.12345 = 12.35%)

a. Compute return on net operating assets (RNOA).

RNOA = 48.04 (incorrect)

b. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. Assume a statutory tax rate of 22%.

NOPM = 11.19% (incorrect)

NOAT = 4.29 (correct)