1. The 2013 balance sheet of E.I. du Pont de Nemours and Company shows average DuPont shareholders' equity attributable to controlling interest of $13,219 million, net operating profit after tax of $3,145 million, net income attributable to DuPont of $4,848 million, and common shares issued of 1,014 million.
Assume the company has no preferred shares issued. DuPont's return on equity (ROE) for the year is:
2. The fiscal year-end 2014 financial statements for Staples, Inc. report revenues of $23,114,263 thousand, net operating profit after tax of $779,262 thousand, net operating assets of $6,752,490 thousand. The fiscal year-end 2013 balance sheet reports net operating assets of $6,920,568 thousand.
Staples' 2014 net operating profit margin is:
3. The 2013 balance sheet of The New York Times Company shows average shareholders' equity attributable to controlling interest of $752,618 thousand, net operating profit after tax of $97,898 thousand, net income attributable to The New York Times Company of $65,105 thousand, and average net operating assets of $ 402,427 thousand.
The company's return on net operating assets (RNOA) for the year is:
4. Selected ratios follow for Baker Hughes Inc. for the year ended December 31, 2013 (in millions). What is the company's return on equity (ROE) for the year?
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Return on net operating assets (RNOA)
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Profit margin (PM)
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Net operating profit margin (NOPM)
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Asset turnover (AT)
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Financial leverage (FL)
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5.94%
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4.90%
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5.59%
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0.82
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1.57
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5. Use the income statement for Staples, Inc. to compute the following:
a. The tax shield
b. NOPAT
The company's combined federal and state statutory tax rate is 37.0%.
STAPLES, INC. and Subsidiaries Consolidated Statement of Income for February 1, 2014
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(in thousands) Sales
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$23,114,263
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Cost of goods sold and occupancy costs
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17,081,978
|
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Gross profit
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6,032,285
|
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Selling, general, and administrative
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4,735,294
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Restructuring charges
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64,085
|
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Amortization of intangibles
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55,405
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Total operating expenses
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4,854,784
|
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Operating income
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1,177,501
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Other nonoperating income (expense):
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|
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Interest income
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4,733
|
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Interest expense
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(119,329)
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Miscellaneous expense
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(100)
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Income from continuing operations before income taxes
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1,062,805
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Income tax expense
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355,801
|
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Net income
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707,004
|
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Loss from discontinued operations
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(86,935)
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Net income attributed to Staples, Inc.
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$ 620,069
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6. Selected balance sheet and income statement data follow for Staples, Inc. (in thousands). Use the data to calculate a) return on net operating assets (RNOA), b) net operating profit margin (NOPM), and c) net operating asset turnover (NOAT) for fiscal 2013.
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2013 Revenues
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2013 NOPAT
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2013 Operating assets
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2013 Operating liabilities
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2012 Net operating assets
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$23,114,263
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$779,262
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$10,682,344
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$3,929,854
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$6,749,749
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