Reformulation for Multi$-$Year Capitalization of Operating Leases

Use the information provided below for Lowe's to answer the requirements.

Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.

$ millions $201920182017$

Net operating assets $($NOA$)$ $$24,547$ $$28,301$ $$27,442$

Net nonoperating obligations $($NNO$)15,23815,89714,675$

Total stockholders' equity $4,7377,6358,364$

Net nonoperating expenses $($NNE$)633642654$

Net operating profit after tax $($NOPAT$)2,8013,9413,596$

Net income $3,0084,4814,021$

Revenue $71,30968,61965,017$

Below are the adjustments that analysts would use to account for Lowe's operating leases as if they were capitalized. Adjustments are based on the present value of Lowe's operating leases for fiscal years $2017-2019.$

Balance Sheet Adjustments $($$ millions$)201920182017$

Net operating assets $($NOA$)$ $$4,356$ $$4,693$ $$4,658$

Net nonoperating obligations $($NNO$)5,6636,1016,055$

Equity $000$

Income Statement Adjustments $($$ millions$)201920182017$

Interest expense $$174$ $$188$ $$186$

Net nonoperating expense, NNE $136146145$

Net operating profit after tax, NOPAT $136146145$

Net income $000$

a$.$ Compute the following ratios using the unadjusted and the adjusted numbers for each year. For simplicity only, use year$-$end balances for NOA, NNO, and equity.

$201920182017$

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NOPM

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NOAT

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FLEV

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