Analysis and Interpretation of ROE and RNOA with No Noncontrolling Interest 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) 2009 Sales $ 9,310 $ 8,258 $ 8,272 2011 2010 Credit card revenues 390 369 301 Total revenues 9,700 8,627 8,573 Cost of sales and related buying and occupancy costs (5,897) (5,328) (5,417) Selling, general and administrative expenses Retail (2,412) (2,109) (2,103) Credit (273) (356) (274) Earnings before interest and income taxes 1,118 834 779 Net interest expense (127) (138) (131) Earnings before income taxes 991 696 648 Income tax expense (378) (255) (247) Net earnings $ 613 $ 441 $ 401 NORDSTROM, INC. Consolidated Balance Sheets ($ millions January 29, 2011 January 30, 2010 Assets Current Assets Cash and cash equivalents $ 1,506 $ 795 Accounts receivable, net 2,026 2,035 Merchandise inventories 977 898 Current deferred tax assets, net 236 238 Prepaid expenses and other 79 88 Total current assets 4,824 4,054 Land, buildings and equipment, net 2,318 2,242 Goodwill 53 53 Other assets 267 230 Total assets $ 7,462 $ 6,579 $ 846 $ 726 375 336 652 596 Liabilities and Shareholders' Equity Current liabilities Accounts payable Accrued salaries, wages and related benefits Other current liabilities Current portion of long-term debt Total current liabilities Long-term debt, net Deferred property incentives, net Other liabilities Shareholders' equity 6 356 1,879 2,014 2,775 2,257 495 469 292 267 Shareholders' equity Common stock, no par value 1,168 1,066 Retained earnings 882 525 Accumulated other comprehensive income (loss) (29) (19) Total shareholders' equity 2,021 1,572 Total liabilities and shareholders' equity $ 7,462 $ 6,579 HINT: For Sales use "Total revenues" for your computations, when applicable. (a) Compute net operating profit after tax (NOPAT) for 2011. Assume that the combined federal and statutory rate is: 37.0%. (Round your answer to the nearest whole number.) 2011 NOPAT = $ X (b) Compute net operating assets (NOA) for 2011 and 2010, 2011 NOA = $ 2010 NOA = $ X (c) Compute RNOA, net operating profit margin (NOPM), and net operating asset turnover (NOAT) for 2011. Do not use NOPM X NOAT to calculate RNOA. (Do not round until your final answer. Round answers to two decimal places.) 2011 RNOA = X % 2011 NOPM - 2011 NOAT = X (d) Compute net nonoperating obligations (NNO) for 2011 and 2010. 2011 NNO = $ 0 X 2010 NNO = $ 0 x (e) Compute return on equity (ROE) for 2011. (Round your answers to two decimal places. Do not round until your final answer.) 2011 ROE = 0 X % (f) Infer the nonoperating return component of ROE for 2011. (Use answers from above to calculate. Round your answer to two decimal places.) 2011 nonoperating return = 0 X %