Compute NOPAT Using Tax Rates from Tax Footnote The income statement for The TJX Companies, Inc., follows.
THE TJX COMPANIES, INC. Consolidated Statements of Income
Fiscal Year Ended ($ thousands)
January 27, 2007
Net sales
$17,404,637
Cost of sales, including buying and occupancy costs
13,213,703
Selling, general and administrative expenses
2,923,560
Provision (credit) for computer intrusion related costs
4,960
Interest expense (revenue), net
15,566
Income from continuing operations before provision for income taxes
1,246,848
Provision for income taxes
470,092
Income from continuing operations
776,756
Gain/(loss) from discontinued operations, net of income taxes
(38,717)
Net income
$ 738,039
U.S. federal statutory income tax rate
35.0%
Effective state income tax rate
4.0%
Impact of foreign operation
-0.4%
All other
-0.9%
Worldwide effective income tax rate
37.7%
Compute TJX's NOPAT for 2007 using its income tax footnote disclosure. (The Federal and State tax rate for 2007 as reported by TJX's tax footnote is: 39.0%). Round to the nearest whole number. 2007 NOPAT = $Answer
