Identify and Compute Net Operating Assets Following is the balance sheet for Lowe’s Companies Inc. LOWE’S COMPANIES INC. Consolidated Balance Sheet $ millions, except par value Feb. 1, 2019 Current assets Cash and cash equivalents $533 Short-term investments 227 Merchandise inventory—net 13,107 Other current assets 979 Total current assets 14,846 Property, less accumulated depreciation 19,234 Long-term investments 267 Deferred income taxes—net 307 Goodwill 316 Other assets 1,038 Total assets $36,008 Current liabilities Short-term borrowings $753 Current maturities of long-term debt 1,158 Accounts payable 8,639 Accrued compensation and employee benefits 691 Deferred revenue 1,356 Other current liabilities 2,530 Total current liabilities 15,127 Long-term debt, excluding current maturities 15,017 Deferred revenue—extended protection plans 863 Other liabilities 1,199 Total liabilities 32,206 Shareholders’ equity Preferred stock—$5 par value, none issued - Common stock—$0.50 par value 418 Capital in excess of par value - Retained earnings 3,602 Accumulated other comprehensive loss (218) Total shareholders’ equity 3,802 Total liabilities and shareholders’ equity $36,008 Identify and compute net operating assets (NOA) as of February 1, 2019. Assume that long‑term investments are nonoperating.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

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Identify and Compute Net Operating Assets

Following is the balance sheet for Lowe’s Companies Inc.

LOWE’S COMPANIES INC.
Consolidated Balance Sheet
$ millions, except par value Feb. 1, 2019
Current assets
Cash and cash equivalents	$533
Short-term investments	227
Merchandise inventory—net	13,107
Other current assets	979
Total current assets	14,846
Property, less accumulated depreciation	19,234
Long-term investments	267
Deferred income taxes—net	307
Goodwill	316
Other assets	1,038
Total assets	$36,008
Current liabilities
Short-term borrowings	$753
Current maturities of long-term debt	1,158
Accounts payable	8,639
Accrued compensation and employee benefits	691
Deferred revenue	1,356
Other current liabilities	2,530
Total current liabilities	15,127
Long-term debt, excluding current maturities	15,017
Deferred revenue—extended protection plans	863
Other liabilities	1,199
Total liabilities	32,206
Shareholders’ equity
Preferred stock—$5 par value, none issued	-
Common stock—$0.50 par value	418
Capital in excess of par value	-
Retained earnings	3,602
Accumulated other comprehensive loss	(218)
Total shareholders’ equity	3,802
Total liabilities and shareholders’ equity	$36,008

Identify and compute net operating assets (NOA) as of February 1, 2019. Assume that long‑term investments are nonoperating.

	Feb. 01, 2019
NOA	Answer

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