Selected published financial information for Costco Wholesale Corporation is reproduced in Appendix B of this textbook. Like many companies, Costco rounds dollar amounts when reporting financial data on various financial statements.

It is very important when reviewing data in Costco’s annual report to determine if the amounts presented have been rounded to the nearest million, nearest thousand, or not rounded at all. Look at page B-3 in Appendix B.

Under the heading at the top of the page, notice the phrase “dollars in thousands, except per share data.’ This means that all dollar amounts, except the dollar amounts reported under Per Share Data-Diluted, are rounded to the nearest thousand. For example, the reported 2006 Net Sales amount of \($58,963,180\) actually represents \($58,963,180,000.\)

Actual dollar amounts on this page are calculated by multiplying the amount reported by 1,000 (\($58,963,180\) x 1,000 = \($58,963,180,000).\)

Instructions: 

Refer to the five year operating and financial highlights on page B-3.

1. List the actual dollar amount of Merchandise Costs and Operating Income for 2006.

2. List the actual dollar amount of Total Assets for 2006.

3. List Costco’s net income per diluted share for 2006.

Data from Appendix B-3

Transcribed Image Text:

FIVE YEAR OPERATING AND FINANCIAL HIGHLIGHTS The following selected financial and operating data are derived from our consolidated financial statements and should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations," and our consolidated financial statements. SELECTED FINANCIAL DATA (dollars in thousands, except per share data) As of and for the fiscal year ended(1) Sept. 3, 2006 (53 weeks) Aug. 28, 2005 (52 weeks) Aug. 29, 2004 (52 weeks) Aug. 31, 2003 (52 weeks) Sept. 1, 2002 (52 weeks) RESULTS OF OPERATION Net sales ..... $58,963,180 $51,879,070 $47,148,627 $41,694,561 $37,994,608 Merchandise costs 52,745,497 46,346,961 42,092,016 37,235,383 33,983,121 Gross Margin 6,217,683 5,532,109 5,056,611 4,459,178 4,011,487 Membership fees. 1,188,047 1,073,156 961,280 852,853 769,406 Operating income 1,625,632 1,474,303 1,385,648 1,156,628 1,131,535 Net income. 1,103,215 1,063,092 882,393 721,000 Net income per diluted share... 2.30 2.18 Dividends per share 0.49 $ 0.43 $ 1.85 0.20 $ 1.53 699,983 1.48 - 69 - Increase in comparable warehouse sales: United States International Total BALANCE SHEET DATA Working capital Net property and 7% 6% 9% 4% 7% 11% 11% 14% 10% 2% 8% 7% 10% 5% 6% $ 412,891 $ 1,477,464 $ 1,098,549 $ 700,431 $ 180,806