Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowes Companies Inc. Assume the statutory tax rate is 22%.

					Pretax Net		Average Net
					Nonoperating	Tax	Operating
Company ($ millions)	Ticker		Sales	NOPBT	Expense	Expense	Assets
Home Depot	HD		$108,203	$15,375	$964	$3,401	$24,965
Lowes	LOW		70,596	3,978	618	1,080	20,326

a. Compute the following measures for both companies.

	Measure	Rounding Instructions	Home Depot	Lowes
1.	Net operating profit (NOPAT)	Round to nearest whole dollar (millions)	Answer	Answer
2.	Return on net operating assets (RNOA)	Round percentage to one decimal place	Answer	Answer
3.	Net operating profit margin (NOPM)	Round percentage to one decimal place	Answer	Answer
4.	Net operating asset turnover (NOAT)	Round amount to two decimal places	Answer	Answer

b. Indicate which of these two companies:

1.	Is more profitable (in $s).		AnswerHome DepotLowe's
2.	Produces the higher profit margin (in %).		AnswerHome DepotLowe's
3.	Uses its NOA more efficiently.		AnswerHome DepotLowe's
4.	Produces the higher return on NOA.		AnswerHome DepotLowe's