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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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