M3-22. Compute ROE and RNOA with Disaggregation Refer to the balance sheet and income statement information for Home Depot from M3-18. a.Compute return on equity. b.Compute retum on net operating assets (RNOA). c.Use ROE and RNOA to determine the nonoperating return for the year. d.Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. $ millions Jan. 31, 2016 Feb. 01, 2015 Operating assets. Nonoperating assets Total assets. .. $40,333 $38,223 2,216 1,723 .42,549 39,946 Operating liabilities. Nonoperating liabilities. Total liabilities 14.918 13,427 21,315 17,197 . 36,233 30,624 Total stockholders' equity ... 6,316 9,322 Sales. Net operating profit before tax (NOPBT). Nonoperating expense before tax... Tax expense Net income. . 88,519 . 11,774 .753 .4,012 ... 7,009