Document Mailings Review View Tell me As Eve 21 AaBbccdee Aa BbceDdee Aa BbCcDc AaBbCcDE A No Spacing Heading Heading 2 Normal Direct Computation of Nonoperating Return with Noncontrolling Interest Balance sheets and income statements for Costco Wholesale Corporation follow Consolidated Statements of Earnings September 1, September 2 August 28, For Fiscal Years Ended (5 millions) 2013 2012 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 (expensel Interest enne (95) (116) Interest income and other.net 97 103 60 Income before income taxes 3,051 2,767 2,383 Provision for income taxes 1.000 841 Net income including noncontrolling interests 2,061 1,767 1,542 Net income attributable to no controlling interests (22) (58) (80) Net income attributable to Costco $ 2,039 $ 1.709 $ 1.462 (99) 990 September 2, 2012 $3,528 Consolidated Balance Sheets September 1, (5 millions, except par value and share data) 2013 Assets Current assets Cash and cash equivalents $ 4,644 Short-term investments 1.480 Receivables, met 1,201 Merchandise inventories 7.894 Deferred income taxes and other current assets 621 Total current 15,840 Property and equipment 4,409 1,026 7.096 550 13,526 4,032 Focus September 2, 2012 10,879 4.261 374 19,546 (6,585) 12,961 653 $ 27,140 Consolidated Balance Sheets September 1, (5 millions, except par value and share data) 2013 Buildings and improvements 11,556 Equipment and fixtures 4.472 Construction in progress 585 21.022 Less accumulated depreciation and amortization (7.141) Net property and equipment 13,881 Other assets 562 Total assets $ 30,283 Liabilities and equity Current liabilities Accounts payable $7,872 Accrued salaries and benefits 2,037 Accrued sumber rewards 710 Accrued sales and other taxes 382 Deferred membership fees 1.167 Other current liabilities 1,089 Total current liabilities 13,257 Long-term debt, excluding current portion 4,998 Deferred income taxes and other liabilities 1.016 Total liabilities 19,271 Equity Preferred stock, 50.005 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 2 Additional paid-in-capital 4.670 Accumulated other comprehensive (loss) income (122) Retained earnings 6,283 Total Costco stockholders' equity 10,833 Noncontrolling interests 179 Total equity 11,012 Total liabilities and equity S 30.283 $ 7,303 1,832 661 397 1.101 966 12,260 1,381 981 14,622 0 2 4,369 156 7.834 12,361 157 12,518 $ 27.140 O Focus Heading 2 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 not operating profit after tax (NOPAT). Assume that Equity and other investments are operating. Round to the nearest whole number, if applicable. 2013 NNE = SAnswer million 2013 NOPAT - SAnswer million b. Compute net nonoperating obligations (NNO) for 2013 and 2012 2013 NNO = SAnswer I million 2012 NNO = SAnswer million c. Compute financial leverage (FLEV). Round answer to four decimal places 2013 FLEV - Answer d. Compute NNEP and Spread. Round answers to two decimal places (example: 0.12345 = 12.35%) 2013 NNEP - Answer % 2013 Spread - Answer % o. Compute the noncontrolling interest ratio (NC ratio). Round answer to four decimal places 2013 NCI ratio = Answer Focus f. Confirm the relation: ROE - [RNOA + (FLEV Spread)) x NCI ratio. 2013 ROE Answer % -[Answer %+ (Answer X Answery %) X Answer C Focu Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co., Inc. follow. Consolidated Statements of Earnings For Fiscal Years Ended (5 millions) February 27, 2010 February 28, 2009 March 1, 2008 Revenue $ 49,694 $ 45,015 $ 40,023 Cost of goods sold 37,534 34,017 30,477 Restructuring charges - cost of goods sold Gross Profit 12.160 10,998 9,546 Selling general and administrative expenses 9,873 8.984 7,385 Restructuring charges 52 78 Goodwill and tradename impairment 66 Operating income 2.235 1,870 2,161 Other income (expense) Investment income and other 35 129 Investment impairment (111) Interest expense 194) 194) (62) Earnings before income tax expense and equity in income of affiliates 2.195 1.700 2.228 Income tax expense 802 674 815 Equity in income of affiliates 1 7 (3) Net earnings including noncontrolling interest 1,394 1,033 1,410 Net income attributable to noncontrolling interest (30) (3) Net income attributable to Best Buy Co, Inc. $1,317 $1,003 $1,407 54 Consolidated Balance Sheets (5 millions, except footnotes) February 27, 2010 February 28, 2009 Assets Current assets Consolidated Balance Sheets (5 millions, except footnotes) February 27, 2010 February 28, 2009 Assets Current assets Cash and cash equivalents $ 1,826 $498 Short-term investments 90 11 Receivables 2,020 1,868 Merchandise inventories 5,486 4,753 Other current assets 1,144 1,062 Total current assets 10,566 8,192 Property and equipment Land and buildings 757 755 Leasehold improvements 2.154 2,013 Fixtures and equipment 4,447 4,060 Property under capital lease 95 112 7,453 6,940 Less: Accumulated depreciation 3,383 2,766 Property and equipment, net 4,070 4,174 Goodwill 2.452 2,203 Tradenames, net 159 173 Customer relationships, net 279 322 Equity and other investments 324 395 Other noncurrent assets 452 367 Total assets $ 18,302 $ 15,826 Liabilities and equity Current liabilities Accounts payable $5,276 $ 4,997 463 Unredeemed gift card liabilities 479 459 544 Accrued compensation and related expenses Accrued liabilities 1,681 1,382 316 281 Accrued income taxes 663 783 Short-term debt 35 My Subscrip $ 5.276 $4.997 479 463 544 1,681 459 Current liabilities Accounts payable Unredeemed gift card liabilities Accrued compensation and related expenses Accrued liabilities Accrued income taxes Short-term debt Current portion of long-term debt Total current liabilities Long-term liabilities Long-term debt Equity Best Buy Co., Inc. Shareholders' equity Preferred stock, 51.00 par value Common stock, 50.10 par value Additional paid in capital Retained earnings Accumulated other comprehensive income loss) Total Best Buy Co., Inc. shareholders' equity Noncontrolling interest Total equity Total liabilities and equity 316 663 35 8.978 1.256 1,104 1.382 281 783 54 8.435 1,109 1.126 41 42 441 5.797 40 6.320 205 4,714 (317) 4643 513 5.156 $ 15,826 644 6,964 $ 18,302 (a) Compute net operating profit after tax (NOPAT) for 2010. Assume that the combined federal and statutory rate is: 37,0%. (Hint: Treat equity in income of affili Round your answer to the nearest whole number.) 2010 NOPAT = 1,408.7 * 5 millions) (b) Compute net operating assets (NOA) for 2010 and 2009. (Hint: Treat the Equity and Other Investments and the Long-Term Liabilities as operating.) 2010 NOA = 6,964 X (5 millions) My Subscriptions (b) Compute net operating assets (NOA) for 2010 and 2009. (Hint: Treat the Equity and Other Investments and the long-Term Liabilities as operating) 2010 NOA = 6,964 X (5 millions) 2009 NOA 5,156 X (5 millions) (c) Compute Best Buy's RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2010. (Do not round until final answer. Round two decimal plac not use NOPM X NOAT to calculate RNOA) 2010 RNOA 20.23 X 2010 NOPM = 2.65 X% 2010 NOAT- 8.2 X (d) Compute net nonoperating obligations (NNO) for 2010 and 2009. 2010 NNO = 1 X (5 millions) 2009 NNO 1 X (5 millions) (e) Compute return on equity (ROE) for 2010. (Round your answers to two decimal places. Do not round until your final answer.) 2010 ROE - 1 x (1) Infer the nonoperating return component of ROE for 2010. (Use answers from above to calculate. Round your answer to two decimal places) 1 2010 nonoperating return Document Mailings Review View Tell me As Eve 21 AaBbccdee Aa BbceDdee Aa BbCcDc AaBbCcDE A No Spacing Heading Heading 2 Normal Direct Computation of Nonoperating Return with Noncontrolling Interest Balance sheets and income statements for Costco Wholesale Corporation follow Consolidated Statements of Earnings September 1, September 2 August 28, For Fiscal Years Ended (5 millions) 2013 2012 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 (expensel Interest enne (95) (116) Interest income and other.net 97 103 60 Income before income taxes 3,051 2,767 2,383 Provision for income taxes 1.000 841 Net income including noncontrolling interests 2,061 1,767 1,542 Net income attributable to no controlling interests (22) (58) (80) Net income attributable to Costco $ 2,039 $ 1.709 $ 1.462 (99) 990 September 2, 2012 $3,528 Consolidated Balance Sheets September 1, (5 millions, except par value and share data) 2013 Assets Current assets Cash and cash equivalents $ 4,644 Short-term investments 1.480 Receivables, met 1,201 Merchandise inventories 7.894 Deferred income taxes and other current assets 621 Total current 15,840 Property and equipment 4,409 1,026 7.096 550 13,526 4,032 Focus September 2, 2012 10,879 4.261 374 19,546 (6,585) 12,961 653 $ 27,140 Consolidated Balance Sheets September 1, (5 millions, except par value and share data) 2013 Buildings and improvements 11,556 Equipment and fixtures 4.472 Construction in progress 585 21.022 Less accumulated depreciation and amortization (7.141) Net property and equipment 13,881 Other assets 562 Total assets $ 30,283 Liabilities and equity Current liabilities Accounts payable $7,872 Accrued salaries and benefits 2,037 Accrued sumber rewards 710 Accrued sales and other taxes 382 Deferred membership fees 1.167 Other current liabilities 1,089 Total current liabilities 13,257 Long-term debt, excluding current portion 4,998 Deferred income taxes and other liabilities 1.016 Total liabilities 19,271 Equity Preferred stock, 50.005 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 2 Additional paid-in-capital 4.670 Accumulated other comprehensive (loss) income (122) Retained earnings 6,283 Total Costco stockholders' equity 10,833 Noncontrolling interests 179 Total equity 11,012 Total liabilities and equity S 30.283 $ 7,303 1,832 661 397 1.101 966 12,260 1,381 981 14,622 0 2 4,369 156 7.834 12,361 157 12,518 $ 27.140 O Focus Heading 2 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 not operating profit after tax (NOPAT). Assume that Equity and other investments are operating. Round to the nearest whole number, if applicable. 2013 NNE = SAnswer million 2013 NOPAT - SAnswer million b. Compute net nonoperating obligations (NNO) for 2013 and 2012 2013 NNO = SAnswer I million 2012 NNO = SAnswer million c. Compute financial leverage (FLEV). Round answer to four decimal places 2013 FLEV - Answer d. Compute NNEP and Spread. Round answers to two decimal places (example: 0.12345 = 12.35%) 2013 NNEP - Answer % 2013 Spread - Answer % o. Compute the noncontrolling interest ratio (NC ratio). Round answer to four decimal places 2013 NCI ratio = Answer Focus f. Confirm the relation: ROE - [RNOA + (FLEV Spread)) x NCI ratio. 2013 ROE Answer % -[Answer %+ (Answer X Answery %) X Answer C Focu Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co., Inc. follow. Consolidated Statements of Earnings For Fiscal Years Ended (5 millions) February 27, 2010 February 28, 2009 March 1, 2008 Revenue $ 49,694 $ 45,015 $ 40,023 Cost of goods sold 37,534 34,017 30,477 Restructuring charges - cost of goods sold Gross Profit 12.160 10,998 9,546 Selling general and administrative expenses 9,873 8.984 7,385 Restructuring charges 52 78 Goodwill and tradename impairment 66 Operating income 2.235 1,870 2,161 Other income (expense) Investment income and other 35 129 Investment impairment (111) Interest expense 194) 194) (62) Earnings before income tax expense and equity in income of affiliates 2.195 1.700 2.228 Income tax expense 802 674 815 Equity in income of affiliates 1 7 (3) Net earnings including noncontrolling interest 1,394 1,033 1,410 Net income attributable to noncontrolling interest (30) (3) Net income attributable to Best Buy Co, Inc. $1,317 $1,003 $1,407 54 Consolidated Balance Sheets (5 millions, except footnotes) February 27, 2010 February 28, 2009 Assets Current assets Consolidated Balance Sheets (5 millions, except footnotes) February 27, 2010 February 28, 2009 Assets Current assets Cash and cash equivalents $ 1,826 $498 Short-term investments 90 11 Receivables 2,020 1,868 Merchandise inventories 5,486 4,753 Other current assets 1,144 1,062 Total current assets 10,566 8,192 Property and equipment Land and buildings 757 755 Leasehold improvements 2.154 2,013 Fixtures and equipment 4,447 4,060 Property under capital lease 95 112 7,453 6,940 Less: Accumulated depreciation 3,383 2,766 Property and equipment, net 4,070 4,174 Goodwill 2.452 2,203 Tradenames, net 159 173 Customer relationships, net 279 322 Equity and other investments 324 395 Other noncurrent assets 452 367 Total assets $ 18,302 $ 15,826 Liabilities and equity Current liabilities Accounts payable $5,276 $ 4,997 463 Unredeemed gift card liabilities 479 459 544 Accrued compensation and related expenses Accrued liabilities 1,681 1,382 316 281 Accrued income taxes 663 783 Short-term debt 35 My Subscrip $ 5.276 $4.997 479 463 544 1,681 459 Current liabilities Accounts payable Unredeemed gift card liabilities Accrued compensation and related expenses Accrued liabilities Accrued income taxes Short-term debt Current portion of long-term debt Total current liabilities Long-term liabilities Long-term debt Equity Best Buy Co., Inc. Shareholders' equity Preferred stock, 51.00 par value Common stock, 50.10 par value Additional paid in capital Retained earnings Accumulated other comprehensive income loss) Total Best Buy Co., Inc. shareholders' equity Noncontrolling interest Total equity Total liabilities and equity 316 663 35 8.978 1.256 1,104 1.382 281 783 54 8.435 1,109 1.126 41 42 441 5.797 40 6.320 205 4,714 (317) 4643 513 5.156 $ 15,826 644 6,964 $ 18,302 (a) Compute net operating profit after tax (NOPAT) for 2010. Assume that the combined federal and statutory rate is: 37,0%. (Hint: Treat equity in income of affili Round your answer to the nearest whole number.) 2010 NOPAT = 1,408.7 * 5 millions) (b) Compute net operating assets (NOA) for 2010 and 2009. (Hint: Treat the Equity and Other Investments and the Long-Term Liabilities as operating.) 2010 NOA = 6,964 X (5 millions) My Subscriptions (b) Compute net operating assets (NOA) for 2010 and 2009. (Hint: Treat the Equity and Other Investments and the long-Term Liabilities as operating) 2010 NOA = 6,964 X (5 millions) 2009 NOA 5,156 X (5 millions) (c) Compute Best Buy's RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2010. (Do not round until final answer. Round two decimal plac not use NOPM X NOAT to calculate RNOA) 2010 RNOA 20.23 X 2010 NOPM = 2.65 X% 2010 NOAT- 8.2 X (d) Compute net nonoperating obligations (NNO) for 2010 and 2009. 2010 NNO = 1 X (5 millions) 2009 NNO 1 X (5 millions) (e) Compute return on equity (ROE) for 2010. (Round your answers to two decimal places. Do not round until your final answer.) 2010 ROE - 1 x (1) Infer the nonoperating return component of ROE for 2010. (Use answers from above to calculate. Round your answer to two decimal places) 1 2010 nonoperating return