Directly Compute Nonoperating Return

The following data are from three recent fiscal years (FY) for Seneca Foods Corporation. Use this information to answer the requirements. Assume the statutory tax rate is 22%.

$ thousands FY3 FY2 FY1 Net sales $1,509,352 $1,385,280 Operating revenues 1,509,352 1,385,280 Operating expenses 1,456,416 1,322,710 Nonoperating expenses 14,325 5,641 Nonoperating revenues 6,759 9,302 Tax expense 12,232 15,224 Net earnings 33,138 51,007 Operating assets $1,227,044 $930,147 $840,855 Operating liabilities 167,739 185,074 162,122 Nonoperating liabilities 492,455 178,119 169,411 Nonoperating assets 16,614 16,883 68,493 Total equity 583,464 583,837 577,815b. RNOA = NOPAT/Average NOA Note: Round answers to the nearest dollar, if applicable. NOPAT Average NOA RNOA 41,303 x $ 902,189 4.58 96 C. NNEP = NNE/Average NNO Note: Round answers to the nearest dollar, if applicable. NNE Average NNO NNEP 7,565 * $ 318,539 V 2.37 96 d. Spread = RNOA - NNEP Note: Round percentages two places after the decimal (ex: 0.12345 = 12.35%). RNOA NNEP Spread 4.58 9% 2.37 6 v 2.21 96