Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Operating assets $40,783 $38,673 Nonoperating assets

Selected balance sheet and income statement information for Home Depot follows.

$ millionsJan. 31, 2016Feb. 01, 2015
Operating assets$40,783$38,673
Nonoperating assets2,2911,798
Total assets43,07440,471
Operating liabilities15,06813,577
Nonoperating liabilities21,27017,152
Total liabilities36,33830,729
Total stockholders' equity6,7369,742
Sales89,464
Net operating profit before tax (NOPBT)12,224
Nonoperting expense before tax828
Tax expense4,523
Net income6,873


Round answers to two decimal places (ex: 0.12345 = 12.35%)

a. Compute return on equity.
Answer%

b. Compute return on net operating assets (RNOA).
Answer%

c. Use ROE and RNOA to determine the nonoperating return for the year.
Answer%

d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA.
NOPM Answer%
NOAT Answer
RNOA Answer%

Step by Step Solution

3.42 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

Solution a Return on equity Net incomeaverage stockholders equity 6873673697422 83 b Tax rate Tax ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting an introduction to concepts, methods and uses

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

13th Edition

978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003

More Books

Students also viewed these Accounting questions