G Mart Wholesale Inc. Consolidated Income Statement For Fiscal Year Ended June 30 ($ Millions)20212020Revenue Net Sales$ 420,800$ 400,500Membership Fees$ 8,230$ 7,560Total Revenue$ 429,030$ 408,060Operating Expenses Mechandising Costs$ 321,500$ 320,000Selling, General and Administrative$ 82,650$ 71,600Asset Impairment Expense$ 120$ 180Total Operating Expenses$ 404,270$ 391,780Operating Income$ 24,760$ 16,280Other Income (expense) Interest Expense$ (260)$ (240)Interest Income and Other, Net$ 60$ 52Income Before Taxes$ 24,560$ 16,092Provision for income taxes$ 6,140$ 4,023Net Income Including Noncontrolling Interest$ 18,420$ 12,069Net Income Attributable to Noncontrolling Interest$ (32)$ (51)Net Income Attributable to G Mart$ 18,388$ 12,018 G Mart Wholesale Inc. Consolidated Balance Sheet As at June 30 ($ million)20212020Assets Current Assets Cash and Cash Equivalents$ 7,761$ 6,762Short-term Investment$ 3,590$ 1,940Receivables, Net$ 6,280$ 5,612Merchandise Inventories$ 44,270$ 43,780Other Current Assets$ 120$ 102Total Current Assets$ 62,021$ 58,196Property and Equipment Land$ 26,854$ 23,621Buildings and Improvements$ 53,666$ 51,664Equipment and Fixtures$ 48,503$ 39,586Construction in Progress$ 1,812$ 664Gross Property and Equipment$ 130,835$ 115,535Less Accumulated Depreciation and Amortization$ (16,625)$ (14,552)Net Property and Equipment$ 114,210$ 100,983Other Assets$ 1,125$ 983Total Assets$ 177,356$ 160,162 $ Millions Except Per Value and Share Data20212020Liabilities and Equity Current Liabilities Accounts Payable$ 27,060$ 26,090Current Portionn of Long-Term Debt$ 7,830$ 9,660Accrued Salaries and Benefits$ 6,500$ 7,000Accrued Member Rewards$ 850$ 810Deferred Membership Fees$ 680$ 690Other Current Liabilities$ 2,216$ 2,212Total Current Liabilities$ 45,136$ 46,462Long-Term Debt Excluding Current Portion$ 38,194$ 42,614Other Liabilities$ 5,510$ 4,340Total Laibilities$ 88,840$ 93,416 Equity Preffered Stock, $0.05 per value 800,000,000 Shares Authorized; No Shares Issued/Outstanding$ -$ -Common Stock $0.05 Par Value; 900,000,000 Authorized; 437,524,000 and 437,952,000 Shares Issued and Outstanding$ 22$ 22Additional Paid in Capital$ 33,500$ 35,420Accumlated Other Comprehensive Loss$ (1,006)$ (1,221)Retained Earnings$ 55,620$ 32,105Total G Mart Shareholders Equity$ 88,136$ 66,326Noncontrolling Interest$ 380$ 420Total Equity$ 88,516$ 66,746Total Laibilities and Equity$ 177,356$ 160,162 Compute net operating assets (NOA) for 2021 and 2020.Compute and disaggregate G Mart’s RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2021;Confirm that RNOA = NOPM x NOAT.

NOA stands for Net Operating assets which is determined through deducting the operating liabilities…

Answered: Mart Wholesale Inc. Consolidated…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.2.1P

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G Mart Wholesale Inc.
	Consolidated Income Statement
For Fiscal Year Ended June 30 ($ Millions)	2021	2020
Revenue
Net Sales	$ 420,800	$ 400,500
Membership Fees	$ 8,230	$ 7,560
Total Revenue	$ 429,030	$ 408,060
Operating Expenses
Mechandising Costs	$ 321,500	$ 320,000
Selling, General and Administrative	$ 82,650	$ 71,600
Asset Impairment Expense	$ 120	$ 180
Total Operating Expenses	$ 404,270	$ 391,780
Operating Income	$ 24,760	$ 16,280
Other Income (expense)
Interest Expense	$ (260)	$ (240)
Interest Income and Other, Net	$ 60	$ 52
Income Before Taxes	$ 24,560	$ 16,092
Provision for income taxes	$ 6,140	$ 4,023
Net Income Including Noncontrolling Interest	$ 18,420	$ 12,069
Net Income Attributable to Noncontrolling Interest	$ (32)	$ (51)
Net Income Attributable to G Mart	$ 18,388	$ 12,018



	G Mart Wholesale Inc.
	Consolidated Balance Sheet
As at June 30 ($ million)	2021	2020
Assets
Current Assets
Cash and Cash Equivalents	$ 7,761	$ 6,762
Short-term Investment	$ 3,590	$ 1,940
Receivables, Net	$ 6,280	$ 5,612
Merchandise Inventories	$ 44,270	$ 43,780
Other Current Assets	$ 120	$ 102
Total Current Assets	$ 62,021	$ 58,196
Property and Equipment
Land	$ 26,854	$ 23,621
Buildings and Improvements	$ 53,666	$ 51,664
Equipment and Fixtures	$ 48,503	$ 39,586
Construction in Progress	$ 1,812	$ 664
Gross Property and Equipment	$ 130,835	$ 115,535
Less Accumulated Depreciation and Amortization	$ (16,625)	$ (14,552)
Net Property and Equipment	$ 114,210	$ 100,983
Other Assets	$ 1,125	$ 983
Total Assets	$ 177,356	$ 160,162

$ Millions Except Per Value and Share Data	2021	2020
Liabilities and Equity
Current Liabilities
Accounts Payable	$ 27,060	$ 26,090
Current Portionn of Long-Term Debt	$ 7,830	$ 9,660
Accrued Salaries and Benefits	$ 6,500	$ 7,000
Accrued Member Rewards	$ 850	$ 810
Deferred Membership Fees	$ 680	$ 690
Other Current Liabilities	$ 2,216	$ 2,212
Total Current Liabilities	$ 45,136	$ 46,462
Long-Term Debt Excluding Current Portion	$ 38,194	$ 42,614
Other Liabilities	$ 5,510	$ 4,340
Total Laibilities	$ 88,840	$ 93,416

Equity
Preffered Stock, $0.05 per value
800,000,000 Shares Authorized; No Shares Issued/Outstanding	$ -	$ -
Common Stock $0.05 Par Value;
900,000,000 Authorized;
437,524,000 and 437,952,000 Shares Issued and Outstanding	$ 22	$ 22
Additional Paid in Capital	$ 33,500	$ 35,420
Accumlated Other Comprehensive Loss	$ (1,006)	$ (1,221)
Retained Earnings	$ 55,620	$ 32,105
Total G Mart Shareholders Equity	$ 88,136	$ 66,326
Noncontrolling Interest	$ 380	$ 420
Total Equity	$ 88,516	$ 66,746
Total Laibilities and Equity	$ 177,356	$ 160,162

Compute net operating assets (NOA) for 2021 and 2020.
Compute and disaggregate G Mart’s RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2021;

Confirm that RNOA = NOPM x NOAT.

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