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Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. (d) Compute net nonoperating obligations (NNO) for 2018 and 2017.
Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. (d) Compute net nonoperating obligations (NNO) for 2018 and 2017. Confirm the relation: NOA = NNO + Total equity. (e) Compute return on equity (ROE) for 2018 . (f) Infer the nonoperating return component of ROE for 2018. \begin{tabular}{|c|c|c|} \hline CostcoWholesaleCorporaConsolidatedBalanceSh & ationeetsSeptember2,2018 & September3,2017 \\ \hline \multicolumn{3}{|l|}{ Current assets } \\ \hline Cash and cash equivalents & $6,055 & $5,761 \\ \hline Short-term investments & 2,419 & 1,233 \\ \hline Receivables, net & 1,669 & 1,432 \\ \hline Merchandise inventories & 11,040 & 11,049 \\ \hline Other current assets & 1,536 & 272 \\ \hline Total current assets & 22,719 & 19,747 \\ \hline Net property and equipment & 20,896 & 18,161 \\ \hline Other assets & 860 & 869 \\ \hline Total assets & $44,475 & $38,777 \\ \hline \multicolumn{3}{|l|}{ Current liabilities } \\ \hline Accounts payable & $11,237 & $9,608 \\ \hline Accrued salaries and benefits & 2,994 & 3,918 \\ \hline Accrued member rewards & 1,057 & 2,176 \\ \hline Deferred membership fees & 2,839 & 1,498 \\ \hline Other current liabilities & 3,014 & 2,725 \\ \hline Total current liabilities & 21,141 & 19,925 \\ \hline Long-term debt & 7,702 & 7,788 \\ \hline Other liabilities & 2,529 & 1,200 \\ \hline Total liabilities & 31,372 & 28,913 \\ \hline \multicolumn{3}{|l|}{ Equity } \\ \hline Preferred stock, $0.01 par value: & 0 & 0 \\ \hline \end{tabular} (a) Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22%. (b) Compute net operating assets (NOA) for 2018 and 2017
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