Reformulation for MultiYear Capitalization of Operating Leases
Use the information provided below for Lowe's to answer the requirements.
Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.
$ millions
Net operating assets NOA $ $ $
Net nonoperating obligations NNO
Total stockholders' equity
Net nonoperating expenses NNE
Net operating profit after tax NOPAT
Net income
Revenue
Below are the adjustments that analysts would use to account for Lowe's operating leases as if they were capitalized. Adjustments are based on the present value of Lowe's operating leases for fiscal years
Balance Sheet Adjustments $ millions
Net operating assets NOA $ $ $
Net nonoperating obligations NNO
Equity
Income Statement Adjustments $ millions
Interest expense $ $ $
Net nonoperating expense, NNE
Net operating profit after tax, NOPAT
Net income
a Compute the following ratios using the unadjusted and the adjusted numbers for each year. For simplicity only, use yearend balances for NOA, NNO, and equity.
Unadjusted Adjusted Unadjusted Adjusted Unadjusted Adjusted
ROE Answer
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RNOA Answer
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NOPM Answer
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NOAT Answer
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FLEV Answer
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