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Hey Chegg, I need help with this question. If you can show me the steps to how you arrived with your answers, I would really

Hey Chegg, I need help with this question. If you can show me the steps to how you arrived with your answers, I would really appreciate it. Thank you for your help.

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Analysis and Interpretation of Profitability Balance sheets and income statements for Nordstrom, Inc., follow. Refer to these financial statements to answer the requirements.

Nordstrom, Inc. Consolidated Statements of Earnings

For Fiscal Years Ended ($ millions)

2013

2012

2011

Net Sales

$11,762

$10,497

$9,310

Credit card revenues

386

380

390

Total revenues

12,148

10,877

9,700

Cost of sales and related buying and occupancy costs

(7,432)

(6,592)

(5,897)

Selling, general and administrative expenses

Retail

(3,166)

(2,807)

(2,412)

Credit

(205)

(229)

(273)

Earnings before interest and income taxes

1,345

1,249

1,118

Interest expense, net

(160)

(130)

(127)

Earnings before income taxes

1,185

1,119

991

Income tax expense

(450)

(436)

(378)

Net earnings

$ 735

$ 683

$ 613

Nordstrom, Inc. Consolidated Balance Sheets

($ millions)

February 2, 2013

January 28, 2012

Assets

Current assets

Cash and cash equivalents

$ 1,285

$ 1,877

Accounts receivable, net

2,129

2,033

Merchandise inventories

1,360

1,148

Current deferred tax assets, net

227

220

Prepaid expenses and other

80

282

Total current assets

5,081

5,560

Land, buildings and equipment, net

2,579

2,469

Goodwill

175

175

Other assets

254

287

Total assets

$ 8,089

$ 8,491

Liabilities and equity

Current liabilities

Accounts payable

$ 1,011

$ 917

Accrued salaries, wages and related benefits

404

388

Other current liabilities

804

764

Current portion of long-term debt

7

506

Total current liabilities

2,226

2,575

Long-term debt, net

3,124

3,141

Deferred income taxes and other liabilities

485

500

Other liabilities

341

319

Shareholders equity

Common stock, no par value: 1,000 shares authorized;

1,645

1,484

197.0 and 207.6 shares issued and outstanding

Retained earnings

315

517

Accumulated other comprehensive loss

(47)

(45)

Total shareholders equity

1,913

1,956

Total liabilities and shareholders equity

$ 8,089

$ 8,491

(a) Compute net operating profit after tax (NOPAT) for 2013. Assume that the combined federal and state statutory tax rate is 37%. (Round to the nearest whole number.) 2013 NOPAT = $Answer (b) Compute net operating assets (NOA) for 2013 and 2012. 2013 NOA = $Answer 2012 NOA = $Answer (c) Compute RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2013. Do not use NOPM x NOAT to calulate RNOA. (Do not round until your final answer. Round answer to two decimal places.) 2013 RNOA = Answer% 2013 NOPM = Answer% 2013 NOAT = Answer (d) Compute net nonoperating obligations (NNO) for 2013 and 2012. 2013 NNO = $Answer 2012 NNO = $Answer (e) Compute return on equity (ROE) for 2013. (Round answer to two decimal places.) 2013 ROE = Answer% (f) Infer the nonoperating return component of ROE for 2013. (Use above answers to calculate. Round answer to two decimal places.) 2013 nonoperating return = Answer%

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