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Following is the income statement for Nordstrom Company. Assume that the combined federal and state statutory tax rate is 37%. ($ millions) ($ millions) 2016

Following is the income statement for Nordstrom Company. Assume that the combined federal and state statutory tax rate is 37%. ($ millions)

($ millions) 2016
Net Sales$14,095
Credit Card Revenues342
Total Revenues14,437
Cost of Sales(9,168)
S. G & A(4,168)
Earnings before interest and income tax1,101
Net interest expense(125)
Earnings before income taxes976
Income tax expense(376)
Net Earnings$600

Statuary tax rate: 37%

Compute NOPAT for Nordstrom's 2016. (Hint: Treat credit card revenues as operating.)

a. $ 679 million

b. $1,136 million

c. $ 851 million

d. $ 725 million

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