1). 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
Company ($ millions)	Ticker		Sales	NOPBT	Expense	Expense	Assets
Home Depot	HD		$108,203	$16,151	$1,013	$3,572	$26,226
Lowe’s	LOW		74,161	4,179	649	1,080	20,326

a. Compute the following measures for both companies.

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

b. Indicate which of these two companies:

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

2). Compute RNOA, Net Operating Profit Margin, and NOA Turnover for Competitors
Selected balance sheet and income statement information for the fiscal year ended February 2, 2019, for Abercrombie & Fitch Co. and TJX Companies Inc., clothing retailers in the high‑end and value‑priced segments, respectively, follows.

					Current	Prior
					Year Net	Year Net
					Operating	Operating
Company ($ millions)		Ticker	Sales	NOPAT	Assets	Assets
Abercrombie & Fitch		ANF	$3,590.10	$86.53	$784.38	$877.30
TJX Companies		TJX	38,583.17	3,036.03	4,252.00	4,073.16

Compute the following ratios for both companies for the fiscal year ended February 2, 2019.
Note: For RNOA and NOPM, round percentage to one decimal places (for example, enter 6.7% for 6.6555%).
Note: For NOAT, round amount to two decimal places (for example, enter 6.78 for 6.77555).

		ANF	TJX
a.	Return on net operating assets (RNOA)
b.	Net operating profit margin (NOPM)
c.	Net operating asset turnover (NOAT)