FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Question
100%

Compute RNOA with Disaggregation

Refer to the balance sheet information below for Home Depot.

$ millions Feb. 3, 2019 Jan. 28, 2018
Operating assets $9,940 $9,636
Nonoperating assets 419 846
Total assets $10,359 $10,482
Operating liabilities $3,926 $3,777
Nonoperating liabilities 6,874 6,362
Total liabilities $10,800 $10,139
Net sales $25,471  
Operating expense before tax 21,815  
Net operating profit before tax (NOPBT) 3,656  
Other expense 229  
Income before tax 3,427  
Tax expense 809  
Net income $2,618  

 

a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 22%.

Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 RNOA.

  Numerator Denominator RNOA
  Answer Answer  
  Answer Answer  

 

b. Disaggregate RNOA into components of profitability (NOPM) and productivity (NOAT). Assume a statutory tax rate of 22%.

Note: 1. Select the appropriate numerator and denominator used to compute NOPM from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 NOPM.

  Numerator Denominator NOPM
  Answer Answer  
  Answer Answer  

 

Note: 1. Select the appropriate numerator and denominator used to compute NOAT from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 NOAT.

  Numerator Denominator NOAT
  Answer Answer  
  Answer Answer  

 

 
 
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education