Required a. Compute net operating profit after tax (NOPAT) for 2016.Assume that the combined federal and state statutory tax rate is 37%.

b. Compute net operating assets (NOA) for 2016 and 2015.

c. Compute RNOA and disaggregate it into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2016; confirm that RNOA NOPM NOAT.

d. Compute net nonoperating obligations (NNO) for 2016 and 2015. Confirm the relation: NOA NNO 1 Shareholders equity.

e. Compute return on equity (ROE) for 2016.

f. Infer the nonoperating return component of ROE for 2016. 3. Comment on the difference between ROE and RNOA. What does this relation suggest about Nordstroms use of equity capit

nalysis 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 Jan. 30, For Fiscal Years Ended ($ millions) 2016 Jan. 31, 2015 Feb. 01, 2014 Net sales. ... Credit card revenues Total revenues Cost of sales and related buying and occupancy costs Selling, general and administrative expenses. Earnings before interest and income taxes Interest expense, net .. Earnings before income taxes Income tax expense Net earnings. $14,095$13,110 $12,166 342 396 374 14,437 13,506 12,540 (9,168)(8,406)(7,737) (4,168) (3,777) (3,453) 1,101 1,323 1,350 (125) (138) (161) 976 1,185 1,189 (376) (465) (455) $ 600 $ 720 $ 734 Financial%20Statement%20Analysis%20%20Valuation%20by%20Easton-Acct%20460-1%20(2).pdf + 246 | D Page view | A Read aloud | Draw NURUSTKUM INC. Consolidated Balance Sheets Jan. 30, Jan. 31, in millions 2016 2015 Assets Current assets Cash and cash equivalents.. $ 595 $ 827 Accounts receivable, net 196 2,306 Merchandise inventories.. 1,945 1,733 Current deferred tax assets, net. 256 Prepaid expenses and other... 278 102 Total current assets 3,014 5,224 Land, buildings and equipment, net. 3,735 3,340 Goodwill.... 435 435 Other assets 514 Total assets. $7,698 $9,245 Liabilities and Shareholders' Equity Current liabilities Accounts payable.. $1,324 $1,328 Accrued salaries, wages and related benefits 416416 Other current liabilities ... 1,161 1,048 Current portion of long-term debt 10 8 Total current liabilities. . 2,911 2,800 Long-term debt, net. 2,795 3,123 Deferred property incentives, net. 540 510 Other liabilities ... 581372 Shareholders' equity Common stock, no par value: 1,000 shares authorized; 173.5 and 190.1 shares issued and outstanding 2,539 2,338 Retained earnings..... (1,610) 166 Accumulated other comprehensive loss (58) (64) Total shareholders' equity ..... 871 2,440 Total liabilities and shareholders' equity. $7,698 $9,245 Required a.Compute net operating profit after tax (NOPAT) for 2016. Assume that the combined federal and state statutory tax rate is 37%. L i nalysis and Interpretation of Profitability Balance sheets and income statements for Nordstrom Inc., follow. Refer to these financial statements to answer the requirements. NORDSTROM INC. Consolidated Statements of Earnings Jan. 30, For Fiscal Years Ended ($ millions) 2016 Jan. 31, 2015 Feb. 01, 2014 Net sales. ... Credit card revenues Total revenues Cost of sales and related buying and occupancy costs Selling, general and administrative expenses. Earnings before interest and income taxes Interest expense, net .. Earnings before income taxes Income tax expense Net earnings. $14,095$13,110 $12,166 342 396 374 14,437 13,506 12,540 (9,168)(8,406)(7,737) (4,168) (3,777) (3,453) 1,101 1,323 1,350 (125) (138) (161) 976 1,185 1,189 (376) (465) (455) $ 600 $ 720 $ 734 Financial%20Statement%20Analysis%20%20Valuation%20by%20Easton-Acct%20460-1%20(2).pdf + 246 | D Page view | A Read aloud | Draw NURUSTKUM INC. Consolidated Balance Sheets Jan. 30, Jan. 31, in millions 2016 2015 Assets Current assets Cash and cash equivalents.. $ 595 $ 827 Accounts receivable, net 196 2,306 Merchandise inventories.. 1,945 1,733 Current deferred tax assets, net. 256 Prepaid expenses and other... 278 102 Total current assets 3,014 5,224 Land, buildings and equipment, net. 3,735 3,340 Goodwill.... 435 435 Other assets 514 Total assets. $7,698 $9,245 Liabilities and Shareholders' Equity Current liabilities Accounts payable.. $1,324 $1,328 Accrued salaries, wages and related benefits 416416 Other current liabilities ... 1,161 1,048 Current portion of long-term debt 10 8 Total current liabilities. . 2,911 2,800 Long-term debt, net. 2,795 3,123 Deferred property incentives, net. 540 510 Other liabilities ... 581372 Shareholders' equity Common stock, no par value: 1,000 shares authorized; 173.5 and 190.1 shares issued and outstanding 2,539 2,338 Retained earnings..... (1,610) 166 Accumulated other comprehensive loss (58) (64) Total shareholders' equity ..... 871 2,440 Total liabilities and shareholders' equity. $7,698 $9,245 Required a.Compute net operating profit after tax (NOPAT) for 2016. Assume that the combined federal and state statutory tax rate is 37%. L