Following are financial statement numbers and ratios for CVS Caremark for the ye
ID: 2793400 • Letter: F
Question
Following are financial statement numbers and ratios for CVS Caremark for the year ended December 31, 2013. If we anticipate a 4% sales growth in 2014, what is the company’s projected net operating assets (NOA) for 2014?
Total revenue (in millions) $126,761
Net operating profit margin (NOPM) 3.9%
Net operating assets as a percent of revenues 37.1%
$48,909 million
$4,944 million
$47,028 million
$5,141 million
$48,909 million
$4,944 million
$47,028 million
$5,141 million
Explanation / Answer
Projected sales= 126761*1.04= 131831.44
Projected net operating assets=131831.44 *37.1%= 48909.46 million= 48909 (rounded off)