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continued from previous page Required a. Compute net operating profit after tax (NOPAT) for...

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Accounting

continued from previous page
Required
a. Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state
statutory tax rate is 22%.
b. Compute net operating assets (NOA) for 2018 and 2017.
c. Compute and disaggregate Costco's RNOA into net operating profit margin (NOPM) and net operat-
ing asset turnover (NOAT) for 2018; confirm that RNOA = NOPM NOAT.
d. Compute net nonoperating obligations (NNO) for 2018 and 2017. Confirm the relation: NOA=NNO
Total equity.
e. Compute return on equity (ROE) for 2018.
f. Infer the nonoperating return component of ROE for 2018.
g. Comment on the difference between ROE and RNOA. What does this relation suggest about
Costco's use of equity capital?
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