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Required

a$.$ Compute net operating profit after tax $($NOPAT$)$ for $2018.$ Assume that the combined federal and state

statutory tax rate is $22\%.$

b$.$ Compute net operating assets $($NOA$)$ for $2018$ and $2017.$

c$.$ Compute and disaggregate Costco's RNOA into net operating profit margin $($NOPM$)$ and net operat$-$

ing asset turnover $($NOAT$)$ for $2018$; confirm that RNOA $=$ NOPM $$ NOAT.

d$.$ Compute net nonoperating obligations $($NNO$)$ for $2018$ and $2017.$ Confirm the relation: NOA$=$NNO

Total equity.

e$.$ Compute return on equity $($ROE$)$ for $2018.$

f$.$ Infer the nonoperating return component of ROE for $2018.$

g$.$ Comment on the difference between ROE and RNOA. What does this relation suggest about

Costco's use of equity capital?