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Can you please Help me find the answer to this question? Thank you very much Using the financial ratios provided in Table 4.1 and the

Can you please Help me find the answer to this question? Thank you very much

Using the financial ratios provided in Table 4.1 and the financial statement information presented below for Costco Wholesale Corporation, calculate the following ratios for Costco for both 2013 and 2014:

Gross profit margin

Operating profit margin

Net profit margin

Times-interest-earned (or coverage) ratio

Return on stockholders equity

Return on assets

Debt-to-equity ratio

Days of inventory

Inventory turnover ratio

Average collection period

Based on these ratios, did Costcos financial performance improve, weaken, or remain about the same from 2013 to 2014?

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LO 1

page 115

Consolidated Income Statements for Costco Wholesale Corporation, 20132014 (in millions, except per share data)

2014 2013

Net sales $110,212 $102,870

Membership fees 2,428 2,286

Total revenue 112,640 105,156

Merchandise costs 98,458 $91,948

Selling, general, and administrative 10,899 10,155

Operating income 3,220 3,053

Other income (expense)

Interest expense

(113) (99)

Interest income and other, net

90 97

Income before income taxes 3,197 3,051

Provision for income taxes 1,109 990

Net income including noncontrolling interests 2,088 2,061

Net income attributable to noncontrolling interests (30) (22)

Net income $2,058 $2,039

Basic earnings per share

$4.69 $4.68

Diluted earnings per share

$4.65 $4.63

Source: Costco Wholesale Corporation 2014 10-K.

Consolidated Balance Sheets for Costco Wholesale Corporation, 20132014 (in millions, except per share data)

August 31,2014 September 1, 2013

Assets

Current Assets

Cash and cash equivalents $5,738 $4,644

Short-term investments 1,577 1,480

Receivables, net 1,148 1,026

Merchandise inventories 8,456 7,894

page 116Deferred income taxes and other current assets 669 621

Total current assets 17,588 $15,840

Property and Equipment

Land $4,716 $4,409

Buildings and improvements 12,522 11,556

Equipment and fixtures 4,845 4,472

Construction in progress 592 585

22,675 21,022

Less accumulated depreciation and amortization (7,845) (7,141)

Net property and equipment 14,830 13,881

Other assets 606 562

Total assets $33,024 $30,283

Liabilities and Equity

Current Liabilities

Accounts payable $8,491 $7,872

Accrued salaries and benefits 2,231 2,037

Accrued member rewards 773 710

Accrued sales and other taxes 442 382

Deferred membership fees 1,254 1,167

Other current liabilities 1,221 1,089

Total current liabilities 14,412 13,257

Long-term debt, excluding current portion 5,093 4,998

Deferred income taxes and other liabilities 1,004 1,016

Total liabilities 20,509 $19,271

Commitments and Contingencies

Equity

Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding 0 0

Common stock $0.005 par value; 900,000,000 shares authorized; 436,839,000 and 432,350,000 shares issued and outstanding 2 2

Additional paid-in capital $4,919 $4,670

Accumulated other comprehensive (loss) income (76) (122)

Retained earnings 7,458 6,283

Total Costco stockholders equity 12,303 10,833

Noncontrolling interests 212 179

Total equity 12,515 11,012

Total Liabilities and Equity

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