Question: Please solve for RNOA: Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowe's Companies Inc. Assume the

 Please solve for RNOA: Compute NOPAT Selected income statement information for

Please solve for RNOA:

2018 is presented below for Home Depot Inc. and Lowe's Companies Inc.

Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowe's Companies Inc. Assume the statutory tax rate is 22% Pretax Net Average Net Nonoperating Tax Operating CompanytSmillions} Ticker Sales NOPBT Expense Expense Assets Home Depot HD $108,203 $15,996 $1.003 $3.538 $25.9?4 Lowe's LOW 73.448 4.139 6-43 1.080 20.326 3. Compute the following measures for both companies. Measure Rounding Instructions Home Depot Lowe's 1. Net operating protmDPATj Round to nearest whole dollar '5 12.23? v 5 2.918 v 2. Return on net operating assets {RNOAJ Round percentage to one decimal place 441 9b a: 1 1.9 91: x 3. Net operating prot margin {NORM} Round percentage to one decimal place 11.3 iii: v 4 iii: v 4. Net operating asset wrnowrtNOAn Round amount to two decimal places 41? I 3.61 v b. Indicate which of these two companies: 1. Is more protable n $5]. Home Depot v 2. Produces the higher prot margin {in 9b}. Home Depot 3. Uses iis NOA more ef'cieny. Home Depot 3 v 4. Produces the higher return on NOA. Home Depot v

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