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 Operating Income 2,759 2,439 Other income (expense) Interest expense (99) (95) (116) Interest income and other, net 97 103 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 46 3,053 Consolidated Balance Sheets ($ millions, except par value and share data) September 1, 2013 September 2, 2012 Assets Current assets Cash and cash equivalents Short-term investments Receivables, net Merchandise inventories Deferred income taxes and other current assets Total current assets Property and equipment Land Buildings and improvements Equipment and fixtures Construction in progress $ 4,644 1,480 1,201 7,894 621 15,840 $ 3,528 1,326 1,026 7,096 550 13,526 4,409 11,556 4,472 585 21,022 (7,141) 13,881 562 $ 30,283 4,032 10,879 4,261 374 19,546 (6,585) 12,961 653 $ 27,140 Less accumulated depreciation and amortization Net property and equipment Other assets Total assets Liabilities and equity Current liabilities Accounts payable Accrued salaries and benefits Accrued member rewards Accrued sales and other taxes $ 7,872 $ 7,303 2,037 1,832 710 382 661 397 382 397 1,167 1,101 966 1,089 13,257 4,998 1,016 19,271 12,260 1,381 981 14,622 Accrued sales and other taxes Deferred membership fees Other current liabilities Total current liabilities Long-term debt, excluding current portion Deferred income taxes and other liabilities Total liabilities Equity Preferred stock, $0.005 par value: 100,000,000 shares authorized; no shares issued and outstanding Common stock, $0.005 par value: 900,000,000 shares authorized; 436,839,000 and 432,350,000 shares issued and outstanding Additional paid-in-capital Accumulated other comprehensive (loss) income Retained earnings Total Costco stockholders' equity Noncontrolling interests Total equity Total liabilities and equity 4,670 (122) 6,283 10,833 179 11,012 $ 30,283 4,369 156 7,834 12,361 157 12,518 $ 27,140 a. Compute ROE for 2013. Do not round until your final answer. Round answers two decimal places. ROE = 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 = AT = FL = C. Compute adjusted ROA (assume a tax rate of 37%). Round answer to two decimal places. Adjusted ROA = 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 Operating Income 2,759 2,439 Other income (expense) Interest expense (99) (95) (116) Interest income and other, net 97 103 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 46 3,053 Consolidated Balance Sheets ($ millions, except par value and share data) September 1, 2013 September 2, 2012 Assets Current assets Cash and cash equivalents Short-term investments Receivables, net Merchandise inventories Deferred income taxes and other current assets Total current assets Property and equipment Land Buildings and improvements Equipment and fixtures Construction in progress $ 4,644 1,480 1,201 7,894 621 15,840 $ 3,528 1,326 1,026 7,096 550 13,526 4,409 11,556 4,472 585 21,022 (7,141) 13,881 562 $ 30,283 4,032 10,879 4,261 374 19,546 (6,585) 12,961 653 $ 27,140 Less accumulated depreciation and amortization Net property and equipment Other assets Total assets Liabilities and equity Current liabilities Accounts payable Accrued salaries and benefits Accrued member rewards Accrued sales and other taxes $ 7,872 $ 7,303 2,037 1,832 710 382 661 397 382 397 1,167 1,101 966 1,089 13,257 4,998 1,016 19,271 12,260 1,381 981 14,622 Accrued sales and other taxes Deferred membership fees Other current liabilities Total current liabilities Long-term debt, excluding current portion Deferred income taxes and other liabilities Total liabilities Equity Preferred stock, $0.005 par value: 100,000,000 shares authorized; no shares issued and outstanding Common stock, $0.005 par value: 900,000,000 shares authorized; 436,839,000 and 432,350,000 shares issued and outstanding Additional paid-in-capital Accumulated other comprehensive (loss) income Retained earnings Total Costco stockholders' equity Noncontrolling interests Total equity Total liabilities and equity 4,670 (122) 6,283 10,833 179 11,012 $ 30,283 4,369 156 7,834 12,361 157 12,518 $ 27,140 a. Compute ROE for 2013. Do not round until your final answer. Round answers two decimal places. ROE = 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 = AT = FL = C. Compute adjusted ROA (assume a tax rate of 37%). Round answer to two decimal places. Adjusted ROA =