Direct Computation of Nonoperating Return with Noncontrolling Interest Balance sheets and income statements for Costco Wholesale Corporation follow Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended 15 milions) September 2, 2018 Total 5141,576 Operating expenses Merchandiscos 123,152 Sding general and administrative 13876 Preopening asperses 68 Operating income 4,480 Other income expense Interesteerde 159 Interest income and other net (121) Income before income taxes 4442 Provision for comes 1.263 Net income including non controlling interest 3,179 Net income attributable to uncontrolling interests 145) Net income attributable to Costco Costco Wholesale Corporation Consolidated Balance Sheets millions, except par value and share data September 2, 2018 September 3, 2017 Currentes Cash and chivalents $6,055 $4546 Short-term investments 1,204 1,233 Receivables.net 1,669 1,432 Merchandise inventories 11,040 9,834 Other current 321 272 Total currents 20,299 17,317 Net property and equipment 19,681 18,161 Others 860 869 Total 540,830 536,347 Current liable Accounts payable $11,237 $9,60B Accrued salaries and be 2,994 2,703 Accrued amber reward 1,057 961 Deferred membership fees 1,624 1,38 Other current abilities 3,014 2,725 Total current liabilities 19,926 13,495 Long-term AB 6,487 6,573 Other la 1,314 1,200 Totalli 27,727 25,268 Equity Preferred stock, 30.01 par value 0 0 Common stock, 30.01 para Additional paksin-capita 6107 5,800 Accumulated other comprehensive 11.1991 11,014 Retained anings 7,887 5,988 Total Costco stockholders equity 12,799 10,778 Noncontrolling interests 304 301 Totality 13,103 11,079 Tetallities and equity 540, B30 536,347 In 2018, Costco's return on equity (ROE) is 26.59% and its return on net operating assets (RNOA) is 26.52%. Assume that the combined federal and state statutory tax rate is 22%. a. Compute net nonoperating expense (NNE) and net operating profit after tax (NOPAT). Round to the nearest whole number, if applicable. 2018 NNE : 0 million 4 2018 NOPAT SO million b. Compute net nonoperating obligations (NNO) for 2018 and 2017 2018 NNOS O million 2017 NNO $ 0 million c. Compute financial leverage (FLEV). Round answer to four decimal places. 2018 FLEVO d. Compute NNEP and Spread. Round answers to two decimal places (example: 0.12345 = 12.35%). 2018 NNEPO % 2018 Spread 0 e. Compute the noncontrolling interest ratio INCI ratio). Round answer to four decimal places. 2018 NCI Ratia 5 f. Confirm the relation: ROE = [RNOA + (FLEV Spread)] NCI ratio 2018 ROED 90 % 0 XD %) 0