Following is the income statement for Lowe’s Companies Inc. LOWE’S COMPANIES INC.   Consolidated Statement of Earnings   Twelve Months Ended (In millions) Feb. 1, 2019 Net sales $80,579 Cost of sales 54,693 Gross margin 25,886 Expenses   Selling, general and administrative 19,677 Depreciation and amortization 1,669 Operating income 4,540 Interest expense, net 705 Pretax earnings 3,835 Income tax provision 1,220 Net earnings $2,615   Compute its net operating profit after tax (NOPAT) for the 12 months ended February 1, 2019, assuming a 22% total statutory tax rate.     Feb. 1,

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

Identify and Compute NOPAT

Following is the income statement for Lowe’s Companies Inc.

LOWE’S COMPANIES INC.  
Consolidated Statement of Earnings  
Twelve Months Ended (In millions) Feb. 1, 2019
Net sales $80,579
Cost of sales 54,693
Gross margin 25,886
Expenses  
Selling, general and administrative 19,677
Depreciation and amortization 1,669
Operating income 4,540
Interest expense, net 705
Pretax earnings 3,835
Income tax provision 1,220
Net earnings $2,615

 

Compute its net operating profit after tax (NOPAT) for the 12 months ended February 1, 2019, assuming a 22% total statutory tax rate.

    Feb. 1, 2019
  NOPAT Answer
 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Financial Statements
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education