1. Calculate Costco's Inventory Turnover (the ratio) between 1997-2001. Please show how you got your calculations! Thank you very much. Will upvote immediately.

Exhibit 5 Financial Statements for Costco Wholesale Corp. (1997 - 2001) 2000 308 Warehouses in Operation Beginning of year (including Mexico) Openings Closings 2001 331 41 (7) 365 27 1999 292 23 (7) 308 1998 274 19 (1) 292 1997 265 17 (8) 274 (4) 331 End of year Members at Year End (thousands) Business (primary cardholders) Gold Star 4,358 12,737 4,170 10,521 3,887 9,555 3,676 8,654 3,537 7,845 2001 2000 1999 1998 1997 34,137 660 34,797 31,621 543 32,164 26,976 480 27,456 23,830 440 24,270 21,484 390 21,874 30.598 3,129 60 18 33,805 992 28,322 2,756 42 7 31,127 1,037 24,170 2,338 31 57 26,596 860 21,380 2,070 27 6 23,483 787 19,314 1,877 27 75 21.293 581 Income Statement (millions) Revenue Net sales Membership fees and other Total revenues Operating expenses Merchandise costs SG&A Preopening expenses Provisio for impaired assets/ closings Total operating expenses Operating income Other income (expenses) Interest expense Interest income and other Provision for merger and restructuring Income continuing ops before taxes Provision for income taxes Income before cumulative effect of accting Cumulative effect of accting, net of tax Income from continuing operations Discontinued operations Income (loss), net of tax Loss on disposal Net Income (loss) (32) 43 (45) 44 0 (39) 54 0 1,052 421 631 0 631 (48) 27 0 766 306 1,003 401 602 0 602 0 859 344 515 (118) 397 (76) 15 0 520 208 312 0 312 460 0 460 0 0 0 0 0 0 397 0 0 0 0 312 602 631 460 Net income per common share: Basic, before accounting change Cumulative effect of accounting changes Basic 1.34 0.00 1.34 1.41 0.00 1.41 1.17 (0.27) 0.90 1.07 0.00 1.07 0.76 0.00 0.76 0.73 Diluted 1.29 1.35 0.86 1.01 Number of common shares for calculation Basic Diluted 449,631 475,827 446,255 475,737 439,253 471,120 431,012 463,371 414,758 449,336 Exhibit 5 (Continued) 2001 2000 1999 1998 1997 602,585 4,999 324,768 2,738,504 211,601 3,882,457 524,505 48,026 174,375 2,490,088 233,124 3,470,118 440,586 256,688 168,648 2,210,475 239,516 3,315,913 361,974 75,549 171,613 1,910,751 108,343 2,628,230 175,508 0 147,133 1,686,525 100,784 2,109,950 Balance Sheet (thousands) Current assets Cash and equivalents Short-term investments Receivables, net Merchandise inventories, net Other current assets Total current assets Property and equipment Land and rights Building, leaseholds and land improvements Equipment and fixtures Construction in process Subtotal Less accumulated depreciation Net property plant and equipment Other assets Total assets 1,877,158 1,621,798 1,264,125 1,119,663 1,094,607 3,834,714 1,529,307 133,995 7,375,174 (1,548,589) 5,826,585 380,744 10,089,786 3,007,752 1,311,110 200,729 6,141,389 (1,307,273) 4,834,116 329,706 8,633,940 2,444,640 1,138,568 176,824 5,024,157 (1,117,269) 3,906,888 282,200 7,505,001 2,170,896 948,515 91,901 4,330,975 (935,603) 3,395,372 236,218 6,259,820 1,933,740 840,578 81,417 3,950,342 (795,708) 3,154,634 211,730 5,476,314 Current liabilities Short-term borrowing Accounts payable Accrued salaries and benefits Accrued sales and other tax Deferred membership income Other current liabilities Total current liabilities Long-term debt Deferred income taxes and other liabilities Total liabilities Minority interest Stockholder's Equity Preferred Common Additional paid in Other accumulated Retained earnings Total stockholder's equity Total liabilities and shareholder's equity 194,552 2,727,639 483,473 152,864 322,583 231,078 4,112,189 859,393 119,434 5,091,016 115,830 9,500 2,197,139 422,264 159,717 262,249 353,490 3,404,359 790,053 90,391 4,284,803 108,857 0 1,912,632 414,276 122,932 225,903 190,490 2,866,233 918,888 66,990 3,852,111 120,780 1,605,533 352,903 102,367 0 136,139 2,196,942 930,035 61,483 3,188,460 105,474 25,460 1,394,309 302,681 90,774 0 150,823 1,964,047 917,001 38,967 2,920,015 88,183 0 2,259 1,125,543 (173,610) 3,928,748 4,882,940 10,089,786 0 2,236 1,028,414 (117,029) 3,326,659 4,240,280 8,633,940 0 2,214 952,758 (118,084) 2,695,222 3,532,110 7,505,001 0 2,176 817,628 (151,842) 2,297,924 2,965,886 6,259,820 0 2,136 706,324 (78,426) 1,838,082 2,468,116 5,476,314 Source: Costco Annual Reports, 1997 - 2001. Fiscal years ended Sunday nearest to August 28