Analysis and Interpretation of Profitability

Balance sheets and income statements for Costco Wholesale Corporation follow.

Costco Wholesale Corporation

Consolidated Statements of Earnings

For Fiscal Years Ended $($$ millions$)$ September $2,2018$

Total revenue $$142,750$

Operating expenses

Merchandise costs $124,326$

Selling, general and administrative $13,876$

Preopening expenses $1,242$

Operating Income $3,306$

Other $($income$)$ expense

Interest expense $159$

Interest income and other, net $(121)$

Income before income taxes $3,268$

Provision for income taxes $1,263$

Net income including noncontrolling interests $2,005$

Net income attributable to noncontrolling interests $(45)$

Net income attributable to Costco $$1,960$

Costco Wholesale Corporation

Consolidated Balance Sheets

$($$ millions, except par value and share data$)$ September $2,2018$ September $3,2017$

Current assets

Cash and cash equivalents $$6,055$ $$5,720$

Short$-$term investments $2,3781,233$

Receivables, net $1,6691,432$

Merchandise inventories $11,04011,008$

Other current assets $1,495272$

Total current assets $22,63719,665$

Net property and equipment $20,85518,161$

Other assets $860869$

Total assets $$44,352$ $$38,695$

Current liabilities

Accounts payable $$11,237$ $$9,608$

Accrued salaries and benefits $2,9943,877$

Accrued member rewards $1,0572,135$

Deferred membership fees $2,7981,498$

Other current liabilities $3,0142,725$

Total current liabilities $21,10019,843$

Long$-$term debt $7,6617,747$

Other liabilities $2,4881,200$

Total liabilities $31,24928,790$

Equity

Preferred stock, $$0\mathrm{.}01$ par value: $00$

Common stock, $$0\mathrm{.}01$ par value: $44$

Additional paid$-$in$-$capital $6,1074,626$

Accumulated other comprehensive loss $(1,199)(1,014)$

Retained earnings $7,8875,988$

Total Costco stockholders$$ equity $12,7999,604$

Noncontrolling interests $304301$

Total equity $13,1039,905$

Total liabilities and equity $$44,352$ $$38,695$

Combined federal and state statutory tax rate $22\%$

$($a$)$ Compute net operating profit after tax $($NOPAT$)$ for $2018.$ Assume that the combined federal and state statutory tax rate is $22\%.$

NOPAT

Answer: $?$