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) September 1, 2013 September 2, 2012 August 28, 2011 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 andadministrative 10,104 9,518 8.691 Preopening expenses 51 37 46 3,053 2,759 2,439 Operating Income Other income (expense) Interest expense Interest income and other, net Income before income taxes (99) (95) (116) 97 103 60 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) Net income attributable to Costco $2,039 (58) $1,709 (80) $1,462 Assets Consolidated Balance Sheets (5 millions, except par value and share data) September 1, 2013 September 2, 2012 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 4,409 4.032 11,556) 10,879 7778 Consolidated Balance Sheets (5 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 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 Equity Preferred stock $0.005 par value: 100.000.000 shares authorized: no shares issued and outstanding 0 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 4670 4,369 Total equity Total liabilities and equity 157 11.012 330281) 12518 $27,140 Assume that Costco's return on equity (ROD) for 2013 is 17.58% and its return on net operating assets (RNOAS 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 50 2013 NOPAT $0 million million b. Compute net nonoperating obligations (NNO) for 2013 and 2012 2013 NNO 0 2012 NNO 50 million 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 0 2013 Spread 0 M e. Compute the noncontrolling interest ratio (NCI ratio). Round answer to four decimal places. 2013 NCI ratio 0 f. Confirm the relation: ROE-IRNOA (FLEV Spread)) NCI ratio, 2013 ROE 0 774 Cloudy %-10 6+0 X 0 MX 0