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Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ( $ millions )
Balance sheets and income statements for Costco Wholesale Corporation follow.
Costco Wholesale Corporation
Consolidated Statements of Earnings
For Fiscal Years Ended $ millions September
Total revenue $
Operating expenses
Merchandise costs
Selling, general and administrative
Preopening expenses
Operating Income
Other income expense
Interest expense
Interest income and other, net
Income before income taxes
Provision for income taxes
Net income including noncontrolling interests
Net income attributable to noncontrolling interests
Net income attributable to Costco $
Costco Wholesale Corporation
Consolidated Balance Sheets
$ millions, except par value and share data September September
Current assets
Cash and cash equivalents $ $
Shortterm investments
Receivables, net
Merchandise inventories
Other current assets
Total current assets
Net property and equipment
Other assets
Total assets $ $
Current liabilities
Accounts payable $ $
Accrued salaries and benefits
Accrued member rewards
Deferred membership fees
Other current liabilities
Total current liabilities
Longterm debt
Other liabilities
Total liabilities
Equity
Preferred stock, $ par value:
Common stock, $ par value:
Additional paidincapital
Accumulated other comprehensive loss
Retained earnings
Total Costco stockholders equity
Noncontrolling interests
Total equity
Total liabilities and equity $ $
Combined federal and state statutory tax rate
ROE
RNOA
a Compute net nonoperating expense NNE and net operating profit after tax NOPAT
NNE
Answer
NOPAT
Answer
b Compute net nonoperating obligations NNO for and
Year NNO
Answer
Answer
c Compute financial leverage FLEV
Numerator Denominator FLEV
Answer
Average net nonoperating obligations NNO
Answer
Average equity
Answer
Answer
d Compute NNEP and Spread.
Numerator Denominator NNEP
Answer
Net nonoperating expense NNE
Answer
Average net nonoperating obligations NNO
Answer
Answer
RNOA given NNEP Spread
Answer
Answer
e Compute the noncontrolling interest ratio NCI ratio
Numerator Denominator NCI ratio
Answer
Answer
f Confirm the relation: ROE RNOA FLEV times Spreadtimes NCI ratio.
Ratio Number
ROE given Answer
RNOA given Answer
FLEV Answer
Spread Answer
NCI ratio Answer
ROE
ROE may be different due to rounding
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