Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Financial Management Expert

Analysis and Interpretation of Profitability

Balance sheets and income statements for Nordstrom, Inc. follow. Refer to these financial statements to answer the requirements.
NORDSTROM, INC.

Consolidated Statements of Earnings
For Fiscal Years Ended ($ millions) 2010 2009 2008 (numbers listed underneath by order)
Sales $ 8,258 $ 8,272 $ 8,828
Credit card revenues 369 301 252
Total revenues 8,627 8,573 9,080
Cost of sales and related buying and occupancy costs (5,328) (5,417) (5,526)
Selling, general and administrative expenses
Retail (2,109) (2,103) (2,130)
Credit (356) (274) (177)
Earnings before interest and income taxes 834 779 1,247
Net interest expense (138) (131) (74)
Earnings before income taxes 696 648 1,173
Income tax expense (255) (247) (458)
Net earnings $ 441 $ 401 $ 715
NORDSTROM, INC.
Consolidated Balance Sheets
($ millions) January 30, 2010 January 31, 2009 (numbers listed underneath by order)
Assets
Current Assets
Cash and cash equivalents $ 795 $ 72
Accounts receivable, net 2,035 1,942
Merchandise inventories 898 900
Current deferred tax assets, net 238 210
Prepaid expenses and other 88 93
Total current assets 4,054 3,217
Land, buildings and equipment, net 2,242 2,221
Goodwill 53 53
Other assets 230 170
Total assets $ 6,579 $ 5,661
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 726 $ 563
Accrued salaries, wages and related benefits 336 214
Other current liabilities 596 525
Current portion of long-term debt 356 299
Total current liabilities 2,014 1,601
Long-term debt, net 2,257 2,214
Deferred property incentives, net 469 435
Other liabilities 267 201
Shareholders' equity
Common stock, no par value 1,066 997
Retained earnings 525 223
Accumulated other comprehensive income (loss) (19) (10)
Total shareholders' equity 1,572 1,210
Total liabilities and shareholders' equity $ 6,579 $ 5,661

Please help answer

(a) Compute net operating profit after tax (NOPAT) for 2010. Assume that the combined federal and statutory rate is: 37.0%. (Round your answer to the nearest whole number.)
2010 NOPAT = $

(b) Compute net operating assets (NOA) for 2010 and 2009.
2010 NOA = $

2009 NOA = $

(c) Compute RNOA, net operating profit margin (NOPM), and net operating asset turnover (NOAT) for 2010. Do not use NOPM x NOAT to calculate RNOA. (Do not round until final answers. Round to two decimal places.)
2010 RNOA = %
2010 NOPM = %
2010 NOAT =

(d) Compute net operating obligations (NNO) for 2010 and 2009.
2010 NNO = $
2009 NNO = $

(e) Compute return on equity (ROE) for 2010. (Round your answers to two decimal places. Do not round until your final answer.)
2010 ROE = %

(f) Infer the nonoperating return component of ROE for 2010. (Use answers from above to calculate. Round your answer to two decimal places.)
2010 nonoperating return = %

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91581381
  • Price:- $25

Priced at Now at $25, Verified Solution

Have any Question?


Related Questions in Financial Management

Answer the following questions 1evaluate the criteria fel

Answer the following Questions : 1. Evaluate the criteria FEL uses to assign managers to project teams. What effi-ciencies do these criteria create? What are the resulting problems? 2. Why is it even more important that ...

Assignmentbullthe dual mandate of the federal reservebullis

Assignment • The Dual Mandate of the Federal Reserve • Is Monetizing Government Debt such a good idea? • How the Federal Reserve Controls the Monetary Base • Explain inflation. What are some causes of inflation? • What a ...

Question - your chief financial officer cfo was unable to

Question - Your chief financial officer (CFO) was unable to attend the recent monthly chamber of commerce meeting. You learned from some other local CFOs that changing exchange rates had dramatically affected their firms ...

Unit 3 dbthe president of eec recently called a meeting to

Unit 3 DB The President of EEC recently called a meeting to announce that one of the firm's largest suppliers of component parts has approached EEC about a possible purchase of the supplier. The President has requested t ...

Financial management assignment - estimation of cost of

Financial Management Assignment - Estimation of Cost of Capital 1. Introduction - In this section you are supposed to introduce the topic of the assignment; the cost of capital-the concept, its importance, various forms ...

Assignment the art of negotiationresearch a current

Assignment : The Art of Negotiation Research a current conflict or negotiation in progress from the last 6 months like peace talks in the Middle East, a corporate merger, a labor dispute, etc. Write a six to eight (6-8) ...

Assignment objectives amp requirements1 to create a new

Assignment Objectives & Requirements: 1. To create a new E-commerce business, which is located in the Kingdom of Saudi Arabia, which include the followings: a. Introduction about your business. b. Product and type of ser ...

Nbsppad 6227fall2018nbspassignmenteach problem is worth

PAD 6227 Fall2018   Assignment Each problem is worth one-half of the grade for this assignment. Make sure to carefully edit your work. 1. The Department of Revenue wants to add more people to the unit that attempts to co ...

Assignmentplease conduct preliminary research on the 2008

Assignment Please conduct preliminary research on the 2008 Lehman Brothers Bankruptcy and its various effects on world financial markets, business management, the credit crisis and individual wealth. Your research and re ...

Assignmentq1xyz company uses anbspperiodic inventory system

Assignment Q1. XYZ Company uses a periodic inventory system. The beginning balance of inventory and the purchases made by XYZ during the month of July are given below: Date Description Units Unit cost Total cost July 01 ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As