I need help with a Accounting question. All explanations and answers will be used to help me learn.
Using the attached balance sheet and income statement, answer the following.
In 2018, Costco’s return on equity (ROE) is 26.59% and its return on net operating assets (RNOA) is 26.52%. Assume that the combined federal and state statutory tax rate is 22%.
a. Compute net nonoperating expense (NNE) and net operating profit after tax (NOPAT). Round to the nearest whole number, if applicable.
2018 NNE million
2018 NOPAT million
b. Compute net nonoperating obligations (NNO) for 2018 and 2017.
2018 NNO million
2017 NNO million
c. Compute financial leverage (FLEV). Round answer to four decimal places.
d. Compute NNEP and Spread. Round answers to two decimal places (example: 0.12345 = 12.35%).
2018 NNEP %
2018 Spread %
e. Compute the noncontrolling interest ratio (NCI ratio). Round answer to four decimal places.
2018 NCI Ratio
f. Confirm the relation: ROE = [RNOA + (FLEV × Spread)] × NCI ratio.
2018 ROE =% = [ % +( X %)] X
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more