Using this method NOPAT NOPBT Tax on operating profit Tax on operating profit Tax expense (Pretax net nonoperating expense Statutory tax rate) Compute NOPAT Using Tax Rates from Tax Footnote The income statement for The TJX Companies, Inc , follows THE TJX COMPANIES, INC Consolidated Statements of Income Fiscal Year Ended ($ thousands) January 27, 2007 Net sales $17,404,637 Cost of sales, including buying and occupancy costs 13,213,703 Selling, general and administrative expenses 2,923,560 Provision (credit) for computer intrusion related costs 4,960 Interest expense (revenue), net 15,566 Income from continuing operations before provision for income taxes 1,246,848 Provision for income taxes 470,092 Income from continuing operations 776,756 Gain (loss) from discontinued operations, net of income taxes (38,717) Net income $ 738,039 U S federal statutory income tax rate 35 0 Effective state income tax rate 4 0 Impact of foreign operation 0 4 All other 0 9 Worldwide effective income tax rate 37 7 Compute TJX's NOPAT for 2007 using its income tax footnote disclosure (The Federal and State tax rate for 2007 as reported by TJX's tax footnote is 39 0 ) Round to the nearest whole number

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Posted on Sep 19, 2024

Using this method NOPAT = NOPBT - Tax on operating profit Tax on operating profit = Tax expense + (Pretax net nonoperating expense * Statutory

Using this method

NOPAT = NOPBT - Tax on operating profit

Tax on operating profit = Tax expense + (Pretax net nonoperating expense * Statutory tax rate)

Compute NOPAT Using Tax Rates from Tax Footnote The income statement for The TJX Companies, Inc., follows.

THE TJX COMPANIES, INC. Consolidated Statements of Income
Fiscal Year Ended ($ thousands)	January 27, 2007
Net sales	$17,404,637
Cost of sales, including buying and occupancy costs	13,213,703
Selling, general and administrative expenses	2,923,560
Provision (credit) for computer intrusion related costs	4,960
Interest expense (revenue), net	15,566
Income from continuing operations before provision for income taxes	1,246,848
Provision for income taxes	470,092
Income from continuing operations	776,756
Gain/(loss) from discontinued operations, net of income taxes	(38,717)
Net income	$ 738,039

U.S. federal statutory income tax rate	35.0%
Effective state income tax rate	4.0%
Impact of foreign operation	-0.4%
All other	-0.9%
Worldwide effective income tax rate	37.7%

Compute TJX's NOPAT for 2007 using its income tax footnote disclosure. (The Federal and State tax rate for 2007 as reported by TJX's tax footnote is: 39.0%). Round to the nearest whole number.