Question

Identify and Compute Net Operating Assets Following is the balance sheet for Lowe's Companies Inc. 461 LOWE'S COMPANIES INC. Consolidated Balance Sheet $ millions, except par value Feb. 1, 2019 Current assets Cash and cash equivalents $920 Short-term investments 392 Merchandise inventory-net 22,610 Other current assets 1,688 Total current assets 25,610 Property, less accumulated depreciation 33,178 Long-term investments Deferred income taxes-net 529 Goodwill 545 Other assets 1,791 Total assets $62,114 Current liabilities Short-term borrowings $1,300 Current maturities of long-term debt 1,998 Accounts payable 14,902 Accrued compensation and employee benefits 1,192 Deferred revenue 2,338 Other current liabilities 4,365 Total current liabilities 26,095 Long-term debt, excluding current maturities 25,904 Deferred revenue-extended protection plans 1,489 Other liabilities 2,068 Total liabilities 55,556 Shareholders' equity Preferred stock-$5 par value, none issued Common stock-$0.50 par value 722 Capital in excess of par value Retained earnings 6,214 Accumulated other comprehensive loss 376 Total shareholders' equity 7,312 Total liabilities and shareholders' equity $62,868 Identify and compute net operating assets (NOA) as of February 1, 2019. Assume that long-term investments are nonoperating.

Answer 1

Answer:-

Calculation of Net Operating Assets (NOA) as on Feb 1, 2019
Current Assets
Cash & Cash Equivalent	920
Short-Term investments	392
Merchandise inventory	22610
other current Assets	1688
Total Current Assets (A)	25610
Current Liability
Short Term Borrowing	1300
Account Payable	14902
Other Current Liability	4365
Current maturities of Long-term debt	1998
Accured compensation & Employee Benefits	1192
Total Current Liablities (B)	23757
Net Opearting = Current Assets - Current Liabilities 25610 - 23757 = 1853