Reference no: EM13850291

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?

Return on net operating assets (RNOA)	Profit margin (PM)	Net operating profit margin (NOPM)	Asset turnover (AT)	Financial leverage (FL)
5.94%	4.90%	5.59%	0.82	1.57

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

(in thousands) Sales	$23,114,263
Cost of goods sold and occupancy costs	17,081,978
Gross profit	6,032,285
Selling, general, and administrative	4,735,294
Restructuring charges	64,085
Amortization of intangibles	55,405
Total operating expenses	4,854,784
Operating income	1,177,501
Other nonoperating income (expense):
Interest income	4,733
Interest expense	(119,329)
Miscellaneous expense	(100)
Income from continuing operations before income taxes	1,062,805
Income tax expense	355,801
Net income	707,004
Loss from discontinued operations	(86,935)
Net income attributed to Staples, Inc.	$     620,069

 

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.

2013 Revenues	2013 NOPAT	2013 Operating assets	2013 Operating liabilities	2012 Net operating assets
$23,114,263	$779,262	$10,682,344	$3,929,854	$6,749,749