Use the information provided below for Southwest Airlines to answer the requirements. S millions 2013 2014...

  

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Use the information provided below for Southwest Airlines to answer the requirements. S millions 2013 2014 2015 Net operating assets (NOA) $7,004 $ 6,479 $ 7,485 Net nonoperating obligations (NNO) (332) (296) 127 Total stockholders' equity 7,336 6,775 7,358 Net nonoperating expenses (NNE) 64 63 51 Net operating profit after tax (NOPAT) 818 1,199 2,232 Net income 754 1,136 2,181 Revenue 17,699 18,605 19,820 Below are the adjustments that analysts would use to account for Southwest's operating leases as if they were capitalized. Adjustments are based on the present value of Southwest's operating leases for fiscal years 2013-2015. Balance Sheet Adjustments (S millions) 2013 2014 2015 Net operating assets (NOA) +3,267 +4,244 +3,188 Net nonoperating obligations (NNO) +3,267 +4,244 +3,188 Equity Income Statement Adjustments ($ millions) 2013 2014 2015 Interest expense +129 +167 +126 Net nonoperating expense, NNE +81 +105 +79 Net operating profit after tax, NOPAT +81 +105 +79 Net income 2013 2014 2015 Unadjusted Adjusted Unadjusted Adjusted Unadjusted Adjusted 10.3 16.8 29.6 ROE % % % % % 11.7 18.5 29.8 RNOA % % % % 4.6 6.4 11.3 NOPM % % % 2.53 NOAT 2.87 2.65 FLEV Use the information provided below for Southwest Airlines to answer the requirements. S millions 2013 2014 2015 Net operating assets (NOA) $7,004 $ 6,479 $ 7,485 Net nonoperating obligations (NNO) (332) (296) 127 Total stockholders' equity 7,336 6,775 7,358 Net nonoperating expenses (NNE) 64 63 51 Net operating profit after tax (NOPAT) 818 1,199 2,232 Net income 754 1,136 2,181 Revenue 17,699 18,605 19,820 Below are the adjustments that analysts would use to account for Southwest's operating leases as if they were capitalized. Adjustments are based on the present value of Southwest's operating leases for fiscal years 2013-2015. Balance Sheet Adjustments (S millions) 2013 2014 2015 Net operating assets (NOA) +3,267 +4,244 +3,188 Net nonoperating obligations (NNO) +3,267 +4,244 +3,188 Equity Income Statement Adjustments ($ millions) 2013 2014 2015 Interest expense +129 +167 +126 Net nonoperating expense, NNE +81 +105 +79 Net operating profit after tax, NOPAT +81 +105 +79 Net income 2013 2014 2015 Unadjusted Adjusted Unadjusted Adjusted Unadjusted Adjusted 10.3 16.8 29.6 ROE % % % % % 11.7 18.5 29.8 RNOA % % % % 4.6 6.4 11.3 NOPM % % % 2.53 NOAT 2.87 2.65 FLEV

Answer rating: 100% (QA)

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