Balance sheets and income statements for Nordstrom, Inc. follow. Refer to these financial statements to answer the
Question:
Balance sheets and income statements for Nordstrom, Inc. follow. Refer to these financial statements to answer the requirements.
NORDSTROM, INC. Consolidated Statements of Earnings | |||
---|---|---|---|
For Fiscal Years Ended ($ millions) | 2010 | 2009 | 2008 |
Sales | $ 8,258 | $ 8,272 | $ 8,828 |
Credit card revenues | 369 | 301 | 252 |
Total revenues | 8,627 | 8,573 | 9,080 |
Cost of sales and related buying and occupancy costs | (5,328) | (5,417) | (5,526) |
Selling, general and administrative expenses | |||
Retail | (2,109) | (2,103) | (2,130) |
Credit | (356) | (274) | (177) |
Earnings before interest and income taxes | 834 | 779 | 1,247 |
Net interest expense | (138) | (131) | (74) |
Earnings before income taxes | 696 | 648 | 1,173 |
Income tax expense | (255) | (247) | (458) |
Net earnings | $ 441 | $ 401 | $ 715 |
NORDSTROM, INC. Consolidated Balance Sheets | ||
---|---|---|
($ millions) | January 30, 2010 | January 31, 2009 |
Assets | ||
Current Assets | ||
Cash and cash equivalents | $ 795 | $ 72 |
Accounts receivable, net | 2,035 | 1,942 |
Merchandise inventories | 898 | 900 |
Current deferred tax assets, net | 238 | 210 |
Prepaid expenses and other | 88 | 93 |
Total current assets | 4,054 | 3,217 |
Land, buildings and equipment, net | 2,242 | 2,221 |
Goodwill | 53 | 53 |
Other assets | 230 | 170 |
Total assets | $ 6,579 | $ 5,661 |
Liabilities and Shareholders' Equity | ||
Current liabilities | ||
Accounts payable | $ 726 | $ 563 |
Accrued salaries, wages and related benefits | 336 | 214 |
Other current liabilities | 596 | 525 |
Current portion of long-term debt | 356 | 299 |
Total current liabilities | 2,014 | 1,601 |
Long-term debt, net | 2,257 | 2,214 |
Deferred property incentives, net | 469 | 435 |
Other liabilities | 267 | 201 |
Shareholders' equity | ||
Common stock, no par value | 1,066 | 997 |
Retained earnings | 525 | 223 |
Accumulated other comprehensive income (loss) | (19) | (10) |
Total shareholders' equity | 1,572 | 1,210 |
Total liabilities and shareholders' equity | $ 6,579 | $ 5,661 |
For Sales use "Total revenues" for your computations, when applicable.
(a) Compute net operating profit after tax (NOPAT) for 2010. Assume that the combined federal and statutory rate is: 37.0%. (Round your answer to the nearest whole number.)
2010 NOPAT = $_________
(b) Compute net operating assets (NOA) for 2010 and 2009.
2010 NOA = $___________
2009 NOA = $___________
(c) Compute RNOA, net operating profit margin (NOPM), and net operating asset turnover (NOAT) for 2010. Do not use NOPM x NOAT to calculate RNOA. (Do not round until final answers. Round to two decimal places.)
2010 RNOA = _________%
2010 NOPM = _________%
2010 NOAT = ________