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Compute RNOA with Disaggregation Refer to the balance sheet information below for Home Depot. $ millions Feb. 3, 2019 Jan. 28, 2018 Operating assets $42,225

Compute RNOA with Disaggregation Refer to the balance sheet information below for Home Depot.

$ millions Feb. 3, 2019 Jan. 28, 2018
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). Assume a statutory tax rate of 22%. ?%

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 ?% NOAT ?

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