Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 | $141,576 |
Operating expenses | |
Merchandise costs | 123,152 |
Selling, general and administrative | 13,876 |
Preopening expenses | 68 |
Operating Income | 4,480 |
Other income (expense) | |
Interest expense | 159 |
Interest income and other, net | (121) |
Income before income taxes | 4,442 |
Provision for income taxes | 1,263 |
Net income including noncontrolling interests | 3,179 |
Net income attributable to noncontrolling interests | (45) |
Net income attributable to Costco | $3,134 |
Costco Wholesale Corporation | |||
---|---|---|---|
Consolidated Balance Sheets | |||
($ millions, except par value and share data) | September 2, 2018 | September 3, 2017 | |
Current assets | |||
Cash and cash equivalents | $6,055 | $4,546 | |
Short-term investments | 1,204 | 1,233 | |
Receivables, net | 1,669 | 1,432 | |
Merchandise inventories | 11,040 | 9,834 | |
Other current assets | 321 | 272 | |
Total current assets | 20,289 | 17,317 | |
Net property and equipment | 19,681 | 18,161 | |
Other assets | 860 | 869 | |
Total assets | $40,830 | $36,347 | |
Current liabilities | |||
Accounts payable | $11,237 | $9,608 | |
Accrued salaries and benefits | 2,994 | 2,703 | |
Accrued member rewards | 1,057 | 961 | |
Deferred membership fees | 1,624 | 1,498 | |
Other current liabilities | 3,014 | 2,725 | |
Total current liabilities | 19,926 | 17,495 | |
Long-term debt | 6,487 | 6,573 | |
Other liabilities | 1,314 | 1,200 | |
Total liabilities | 27,727 | 25,268 | |
Equity | |||
Preferred stock, $0.01 par value: | 0 | 0 | |
Common stock, $0.01 par value: | 4 | 4 | |
Additional paid-in-capital | 6,107 | 5,800 | |
Accumulated other comprehensive loss | (1,199) | (1,014) | |
Retained earnings | 7,887 | 5,988 | |
Total Costco stockholders equity | 12,799 | 10,778 | |
Noncontrolling interests | 304 | 301 | |
Total equity | 13,103 | 11,079 | |
Total liabilities and equity | $40,830 | $36,347 |
Please show your work or formula if using Excel to solve.
Question 1
Part 1A : Compute Costcos RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. (Do not round until final answer. Round two decimal places. Do not use NOPM x NOAT to calculate RNOA.)
2018 RNOA = Answer% 2018 NOPM = Answer% 2018 NOAT = Answer$
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started