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
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
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

HINT: For Sales use "Total revenues" for yourcomputations, when applicable.

(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.)

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

(c) Compute RNOA, net operating profit margin (NOPM), and netoperating asset turnover (NOAT) for 2010. Do not use NOPM x NOAT tocalculate RNOA. (Do not round until final answers. Round to twodecimal places.)

(d) Compute net nonoperating obligations (NNO) for 2010 and2009.

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

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