Question 6

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%. 0 % 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 0 % NOAT 0