Question
Compute and Analyze Measures for DuPont Disaggregation Analysis Balance sheets and income statements for Costco Wholesale Corporation follow. Consolidated Statements of Earnings For Fiscal Years
Compute and Analyze Measures for DuPont Disaggregation Analysis Balance sheets and income statements for Costco Wholesale Corporation follow.
Consolidated Statements of Earnings | |||
---|---|---|---|
For Fiscal Years Ended ($ millions) | September 1, 2013 | September 2, 2012 | August 28, 2011 |
Revenue | |||
Net Sales | $102,870 | $97,062 | $87,048 |
Membership fees | 2,286 | 2,075 | 1,867 |
Total revenue | 105,156 | 99,137 | 88,915 |
Operating expenses | |||
Merchandise costs | 91,948 | 86,823 | 77,739 |
Selling, general and administrative | 10,104 | 9,518 | 8,691 |
Preopening expenses | 51 | 37 | 46 |
Operating Income | 3,053 | 2,759 | 2,439 |
Other income (expense) | |||
Interest expense | (99) | (95) | (116) |
Interest income and other, net | 97 | 103 | 60 |
Income before income taxes | 3,051 | 2,767 | 2,383 |
Provision for income taxes | 990 | 1,000 | 841 |
Net income including noncontrolling interests | 2,061 | 1,767 | 1,542 |
Net income attributable to noncontrolling interests | (22) | (58) | (80) |
Net income attributable to Costco | $ 2,039 | $ 1,709 | $ 1,462 |
Consolidated Balance Sheets | ||
---|---|---|
($ millions, except par value and share data) | September 1, 2013 | September 2, 2012 |
Assets | ||
Current assets | ||
Cash and cash equivalents | $ 4,644 | $ 3,528 |
Short-term investments | 1,480 | 1,326 |
Receivables, net | 1,201 | 1,026 |
Merchandise inventories | 7,894 | 7,096 |
Deferred income taxes and other current assets | 621 | 550 |
Total current assets | 15,840 | 13,526 |
Property and equipment | ||
Land | 4,409 | 4,032 |
Buildings and improvements | 11,556 | 10,879 |
Equipment and fixtures | 4,472 | 4,261 |
Construction in progress | 585 | 374 |
21,022 | 19,546 | |
Less accumulated depreciation and amortization | (7,141) | (6,585) |
Net property and equipment | 13,881 | 12,961 |
Other assets | 562 | 653 |
Total assets | $ 30,283 | $ 27,140 |
Liabilities and equity | ||
Current liabilities | ||
Accounts payable | $ 7,872 | $ 7,303 |
Accrued salaries and benefits | 2,037 | 1,832 |
Accrued member rewards | 710 | 661 |
Accrued sales and other taxes | 382 | 397 |
Deferred membership fees | 1,167 | 1,101 |
Other current liabilities | 1,089 | 966 |
Total current liabilities | 13,257 | 12,260 |
Long-term debt, excluding current portion | 4,998 | 1,381 |
Deferred income taxes and other liabilities | 1,016 | 981 |
Total liabilities | 19,271 | 14,622 |
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 | 4,670 | 4,369 |
Accumulated other comprehensive (loss) income | (122) | 156 |
Retained earnings | 6,283 | 7,834 |
Total Costco stockholders equity | 10,833 | 12,361 |
Noncontrolling interests | 179 | 157 |
Total equity | 11,012 | 12,518 |
Total liabilities and equity | $ 30,283 | $ 27,140 |
NOTE: Using net income attributable to controlling interests with your computations, when applicable.
a. Compute ROE for 2013.
Do not round until your final answer. Round answers two decimal places.
ROE =Answer%
b. Confirm that ROE equals ROE computed using the component measures for profit margin, asset turnover, and financial leverage using: ROE = PM * AT * FL.
Compute the components of ROE.
Do not round until your final answer. Round answers two decimal places.
PM = Answer% AT = Answer FL = Answer
c. Compute adjusted ROA (assume a tax rate of 37%).
Round answer to two decimal places. Adjusted ROA =Answer%
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