question archive Balance Sheet ($ millions, except footnotes) February 3, 2007 January 28, 2006 Property and equipment , net 21,431 19,038 Other noncurrent assets 1,212 1,552 Total assets $ 37,349 $ 34,995 Liabilities and shareholders ' investment Accounts payable $ 6,575 $ 6,268 Accrued and other current liabilities 3, 180 2,567 Current portion of long-term debt and notes payable 1,362 753 Total current liabilities 11,117 9,588 Long-term debt 8,675 9,119 Deferred income taxes 577 851 Other noncurrent liabilities 1,347 1,232 Shareholders 'investment Common stock 72 73 Additional paid -in-capital 2,387 2,121 Retained earnings 13,417 12,013 Accumulated other comprehensive income (loss ) (243 ) (2) Total shareholders 'investment 15,633 14,205 Total liabilities and shareholders 'equity $ 37,349 $ 34,995 (a) Compute net operating profit after tax (NOPAT) for 2007
Balance Sheet ($ millions, except footnotes) February 3, 2007 January 28, 2006 Property and equipment , net 21,431 19,038 Other noncurrent assets 1,212 1,552 Total assets $ 37,349 $ 34,995 Liabilities and shareholders ' investment Accounts payable $ 6,575 $ 6,268 Accrued and other current liabilities 3, 180 2,567 Current portion of long-term debt and notes payable 1,362 753 Total current liabilities 11,117 9,588 Long-term debt 8,675 9,119 Deferred income taxes 577 851 Other noncurrent liabilities 1,347 1,232 Shareholders 'investment Common stock 72 73 Additional paid -in-capital 2,387 2,121 Retained earnings 13,417 12,013 Accumulated other comprehensive income (loss ) (243 ) (2) Total shareholders 'investment 15,633 14,205 Total liabilities and shareholders 'equity $ 37,349 $ 34,995 (a) Compute net operating profit after tax (NOPAT) for 2007
Subject:ManagementPrice:9.82 Bought3
Balance Sheet ($ millions, except footnotes) February 3, 2007 January 28, 2006 Property and equipment , net 21,431 19,038 Other noncurrent assets 1,212 1,552 Total assets $ 37,349 $ 34,995 Liabilities and shareholders ' investment Accounts payable $ 6,575 $ 6,268 Accrued and other current liabilities 3, 180 2,567 Current portion of long-term debt and notes payable 1,362 753 Total current liabilities 11,117 9,588 Long-term debt 8,675 9,119 Deferred income taxes 577 851 Other noncurrent liabilities 1,347 1,232 Shareholders 'investment Common stock 72 73 Additional paid -in-capital 2,387 2,121 Retained earnings 13,417 12,013 Accumulated other comprehensive income (loss ) (243 ) (2) Total shareholders 'investment 15,633 14,205 Total liabilities and shareholders 'equity $ 37,349 $ 34,995 (a) Compute net operating profit after tax (NOPAT) for 2007. Assume that the combined federal and statutory rate is: 39 %. (Round your answer to the nearest whole number .) 2007 NOPAT = 3,136 ($ millions )
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Answer:
a. 2007 NOPAT = 3,136
b. 2007 NOA = 24,867
2006 NOA = 22,429
c. 2006 RNOA = 13.26
2007 NOPM = 5.27
2007 NOAT = 2.52
d. 2007 NNO = 9,224
2006 NNO = 8,224
Step-by-step explanation
Solution:
a. 2007 NOPAT = operating income - tax on operating profit
Tax on operating profit = tax expense + tax shield = tax expense + (pretax net non operating expense x statutory tax rate)
=5069-(1710+(572*39%))
=$3,136
b. NOA = operating assets - operating liabilities
NOA = (total assets - cash and equivalents) - (total assets - total stockholders equity - short term borrowings and current portion of long term debt - long term debt)
2007 NOA = (37349-813)-(37349-15633-1363-8675)
=$24,857
2006 NOA = (34995-1648)-(34995-14205-753-9119)
=$22429
c. 2007 RNOA = NOPAT/average NOA
=3136/((24857+22429)/2)
=13.26%
2007 NOPM = NOPAT/sales
=3136/59490
=5.27%
2007 NOAT = Sales/average NOA
=59490/((24857+22429)
=2.52
d. NNO= non operating liabilities + non controlling interest - non operating assets
2007 NNO = (1362+8675)+0-(813)
=$9224
2006 NNO = (753+9119)+0-(1648)
=$8224
