10k report For Costco Wholesale Corporation

d. Analyze the financial statements and calculate and/or show important financial measurements. What trends if any can be construed?

e. Compare cash flows for at least the two years. What conclusions can you draw? Has there been a significant change in free cash flow?

III Reporting

a. How is comprehensive income reported? Compare reported net income to comprehensive income.

b. Any adjustments to retained earnings? If so, why?

c. Any changes in accounting principle? If so, what change and why was it made?

d. Either from the financial statements or notes, give two examples where reporting information is on the historical cost basis and two examples where reporting information is on the fair market value basis.

e. Who performed the audit for the firm? Did the auditors give an unqualified (clean) audit opinion?

IV Accounting Policies

a. How are inventories, if any, valued?

b. Explain the companys major revenue and expense recognition policies.

c. What is the depreciation policy for property, plant and equipment?

d. Does the company have intangible assets? If so, how are they recorded

_More Specific Questions_

1-What new types of services or operations is the company exploring in attempting to promote future growth?

2-Is the company involved in any major litigation or labor issues? What are they and what are the issues involved?

3-The company operates internationally. What are some of the legal, regulatory and environmental issues that it must deal with in different nations?

4-Has there been much expansion in the past few years? If so, how have the funds been provided: debt or equity financing or a combination of both?