Direct Computation of Nonoperating Return with Noncontrolling Interest Balance sheets and income statements for Costco Wholesale Corporation follow. Consolidated Statements of Earnings Revenue For Fiscal Years Ended (5 millions) Net Sales Membership fees September 1, 2013 September 2, 2012 August 28, 2011 $102,870 $97,062 $87,048 2,286 2,075 1,867 105,156 99,137 88,915 Total revenue Operating expenses Merchandise costs 91,948 86,823 77,739 Selling, general andadministrative 10,104 9,518 8,691 Preopening expenses 51 37 46 Operating Income 3,053 2,759 2,439 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 (99) (95) (116) 97 103 60 3,051 2,767 2,383 990 1,000 841 2,061 1,767 1,542 (22) (58) (80) $ 2,039 $ 1,709 $1,462 Consolidated Balance Sheets (5 millions, except par value and share data) September 1, 2013 September 2, 2012 Consolidated Balance Sheets ($ 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 Buildings and improvements Equipment and fixtures Construction in progress Less accumulated depreciation and amortization Net property and equipment Other assets Total assets 4,409 4,032 11,556 10,879 4,472 4,261 585 374 21,022 19,546 (7,141) (6,585) 13,881 12,961 562 653 $30,283 $27,140 Liabilities and equity Current liabilities Accounts payable Accrued salaries and benefits Accrued member rewards 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 $ 7,872 $ 7,303 2,037 1,832 710 661 382 397 1,167 1,101 1,089 966 13,257 12,260 4,998 1,381 1,016 981 19,271 14,622 Equty Peferred stock, 10005 parvate 100.000.000 shares authorizet me shares med and outstanding Commoristas, 10 005 par value s00 300,000 shares athere 4343,000 and 432.150.000 shares issued and standing 2 A670 4305 Aced her sumprehens 123 IM Rataned saming 6,383 2834 Total Costco stockholder equity 50833 12.30 Noncontrating interests Solut 199 Tital Sabities and equity 11.812 30.283 $27,140 Assume that Costco's return on equity (ROE) for 2013 is 17.58% and its return on net operating assets (RNOA) is 21.78%. Assume that the combined federal and state statutory tax rate is 376 a.Compute net nonoperating expense (NNE) and net operating profit after tax (NOPAT) Assume that Equity and other investments are operating Round to the nearest whole number, if applicable 2013 NNE 5 0 million 2013 NOPAT $0 million b. Compute net nonoperating obligations (NNO) for 2013 and 2012 million 2013 NNO 50 2012 NNO O million c. Compute financial leverage (FLEV) Round answer to four decimal places. 2013 FLEV 0 d. Compute NNEP and Spread: Round answers to two decimal places (example: 0.12345 12.35%) 2013 NNEP D 2013 Spread 0 MacBook Air d. Compute NNEP and Spread. Round answers to two decimal places (example: 0.12345 12.35%). 2013 NNEP= % 0 2013 Spread= 0 % e. Compute the noncontrolling interest ratio (NCI ratio). Round answer to four decimal places. 2013 NCI ratio = 0 f. Confirm the relation: ROE [RNOA+ (FLEV x Spread)] NCI ratio. 2013 ROE 0 %=0 Previous Save Answers %+ O X 0 %)] X 0 Pred stock, 10.005 par vatic 100,000,000 shares authorized no shares insued 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 labilices and equity 0 2 4,670 4.309 (122) 156 6.283 7,834 10.833 12.361 179 157 11,012 130.283 12,518 $27,140 Assume that Costco's return on equity (ROE) for 2013 is 17.58% and its return on net operating assets (RNOA) is 21.78%. Assume that the combined federal and state statutory tax rate is 37 a. Compute net nonoperating expense (NNE) and net operating profit after tax (NOPAT) Assume that Equity and other investments are operating. Round to the nearest whole number, if applicable 2013 NNE $0 million 2013 NOPAT 50 million b. Compute net nonoperating obligations (NNO) for 2013 and 2012. million 2013 NNO 50 2012 NNO 10 million c. Compute financial leverage (FLEV). Round answer to four decimal places 2013 FLEVO d. Compute NNEP and Spread. Round answers to two decimal places (example: 0.12345 12.35%). 2013 NNEP 0 2013 Spread 0 Compute the poor INCLatial Pundance to four.decimal places