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• Explain which component of the ratio caused the change and why (i.e., Debt increased, net income decreased, COGS decreased, etc.) Describe the components of the income statement and alternative presentation formats of that statement ( If you zoom in on images it's more visible)

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AutoSave OFF X Project 1 -Saved to my Mac Q Search Sheet Home Insert Formulas Data Review View Share Page Layout fx D51 v D E F G H 1 1 J K L M B S MILLIONS 2019-12 2018-12 2017-12 $ 3,704 $ 1,492 53,179 $ 1,437 $ 2,714 "$ 1,370 "5 147 ' 595 (49) 5544 (29) 5514 " (536) (1,313) (894) 322 1623 51,561 $ 421 $ 2,258 5 807 (6) 139 56,356 "(14) 56,726 55,774 "S (2,998) "S (2,969) 's (2,502) A 1 COSTCO Statement of CASH FLOW 2 (Fiscal year ends in September. USD in millions except per share data.) 3 Cash Flows From Operating Activities 4 Net income 5 Depreciation & amortization Amortization of debt discount/premium and issuance costs 7 Investment/asset impairment charges 8 Deferred income taxes 9 Stock based compensation 10 Change in working capital 11 Accounts receivable 12 Inventory 13 Prepaid expenses 14 Accounts payable 15 Accrued liabilities 16 Other working capital 17 Other non-cash items 18 Net cash provided by operating activities 19 Cash Flows From Investing Activities 20 Investments in property, plant, and equipment 21 Acquisitions, net 22 Purchases of investments 23 Sales/Maturities of investments 24 Other investing activities 25 Net cash used for investing activities 26 Cash Flows From Financing Activities 27 Change in bank payment outstanding 28 Debt issued 29 Debt repayment 30 Excess tax benefit from stock based compensation 31 Repurchases of common stock 32 Dividend paid 33 Other financing activities 34 Net cash provided by (used for) financing activities 35 Effect of exchange rate changes 36 Net change in cash 37 Cash at beginning of period 38 Cash at end of period 39 Free Cash Flow 40 Operating cash flow 41 Capital expenditure 42 Free cash flow 43 44 45 46 47 48 49 (1,094) $ 1,231 'S (4) '(2,865) (1,060) $ 1,078 '54 " (2,947) "S (1,279) $ 1,385 's 30 "S (2,366) 5 80 5210 298 (89) (236) $ 3,782 's (2,200) (202) (272) (86) "5 (217) (328) 'S (469) 5 (689) $ (3,904) '(247) 5 (1,038) 's (9) (1,147) "s (15) "2,329 6,055 "$ 8,384 "(41) "(1,281) "5 (37) $ 1,509 "54,546 56,055 511 "5 (3,218) '$ 25 '1.167 $ 3,379 '$ 4,546 6,356 (2.865) $ 9,099 15,774 (2.947) 58,252 56,726 " (2,366) $ 10,354 Ratios Balance Sheet Income Statement Cash Flow + Ready a - + 100% AutoSave OFF X Project 1 -Saved to my Mac Q- Search Sheet Review View Share v v D E F G H 1 J K L M B IS MILLIONS 2019-12 2018-12 $ 149,351 $ 138,434 $ 3,352 $ 3.142 " 152,703 $ 141,576 5 147,966 $ 137,096 2017-12 $ 126,172 $ 2,853 5 129,025 $ 124,914 5 132,886 $ 14,994 586 5 123,152 5 13,876 's 68 15111,882 $ 12,950 '82 $ 147,966 's 4,737 (150) S 178 4,765 $ 1,061 '5 137,096 "$ 4,480 "5 (159) 5121 '54,442 $ 1.263 $ 124,914 54,111 's(134) 's 62 54.039 $ 1,325 53,179 53,704 " (45) Home Insert Page Layout Formulas Data A1 fx COSTCO INCOME STATEMENT A 1 1 COSTCO INCOME STATEMENT 2 Fiscal year ends in September. USD in Millions except per share data. 3 Net Sales 4 Membership fess 5 Revenue 6 Cost of revenue 7 Gross profit 8 Operating expenses 9 Merchandise Costs 10 Sales, General and administrative 11 Pre-opening expenses 12 Restructuring, merger and acquisition 13 Other operating expenses 14 Total operating expenses 15 Operating income 16 Interest Expense 17 Other income (expense) 18 Income before taxes 19 Provision for income taxes 20 Net income from continuing operations 21 Net income 22 Preferred dividend 23 Net income available to common shareholders 24 Earnings per share 25 Basic 26 Diluted 27 Weighted average shares outstanding (000's) 28 Basic 29 Diluted 30 EBITDA 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 's (45) $ 3,134 $ 2,714 5 (35) 52,679 5 3,659 8.32 8.26 7.15 7.09 6.11 6.08 439755 442923 $ 6,257 438515 441834 $ 5,879 438437 440937 $ 5,409 Ratios Balance Sheet Income Statement Cash Flow + Ready - + 100% AutoSave OFF X Project 1 -Saved to my Mac Qu Search Sheet Review View Share v D E F G H 1 J K L M B MILLIONS 2019-12 2018-12 2017-12 $ 8,384 56,055 '54,546 $ 1,060 "$ 1,535 5 11,395 $ 1,204 5 1,669 '11,040 $ 1,233 "$ 1,432 59.834 $ 1,111 $ 23,485 321 "520,289 272 $ 17,317 $ 32,626 (11,736) $ 20,890 $ 30,714 '5 (11,033) "5 19,681 "28,341 '(10,180) $ 18,161 Home Insert Page Layout Formulas Data A48 fx A 1 COSTCO BALANCE SHEET 2 Fiscal year ends in September. USD in Millions except per share data. 3 Assets: 4 Current assets: 5 Cash 6 Cash and cash equivalents 7 Total cash 8 Short-term investments 9 Receivables 10 Inventories 11 Deferred income taxes 12 Prepaid expenses 13 Other current assets 14 Total current assets 15 Non-current assets: 16 Property, plant and equipment: 17 Gross property, plant and equipment 18 Accumulated Depreciation 19 Net property, plant and equipment 20 Goodwill 21 Intangible assets 22 Deferred income taxes 23 Other long-term assets 24 Total non-current assets 25 Total assets 26 Liabilities and stockholders' equity 27 Liabilities 28 Current liabilities 29 Short-term debt 30 Accounts payable 31 Accrued liabilities 32 Other current liabilities 33 Total current liabilities 34 Non-current liabilities: 35 Long-term debt 36 Other long-term liabilities 37 Total non-current liabilities 38 Total liabilities 39 Stockholders' equity: 40 Common stock 41 Additional paid-in capital 42 Retained earnings 43 Accumulated other comprehensive income 44 Total stockholders' equity 45 Non controlling interests 46 Total Equity 47 Total liabilities and stockholders' equity 48 49 $ 1,025 S 860 $ 869 $ 45,400 $ 40,830 '36,347 51,711 $ 11,679 54,356 $ 5,491 $ 23,237 5 1,624 $11,237 '5 4,051 $ 3,014 "5 19,926 "5 1,498 59,608 13,664 52.725 $ 17,495 $ 5,124 $ 1,455 $ 6,579 5 29,816 6,487 $1,314 $ 7,801 $ 27,727 "5 6,573 5 1,200 57,773 '$ 25,268 4 $6,417 $ 10,258 's (1,436) $ 15,243 $ 341 5 15,584 545,400 4 56,107 $ 7,887 5 (1,199) $12.799 '$ 304 $ 13,103 's 40,830 4 $ 5,800 $ 5,988 " (1,014) $ 10,778 301 5 11,079 5 36,347 Ratios Balance Sheet Income Statement Cash Flow + - Ready + 100% AutoSave OFF Project 1 - Saved to my Mac Qu Search Sheet Home Formulas Data Review View Share Insert Page Layout A x fx A1 v D E F G H 1 J INDUSTRY (2018) Apparel, Footwear, Accesories 2018 11.04% 0.97% 2.30% 7.68% 7.79% 24.84% FROM 2018-2019 INC/DEC (+/-) DEC DEC INC INC INC DEC DEC INC DEC DEC DEC DEC DEC DEC DEC INC DEC $ MILLIONS 2019 11.02% 0.93% 2.48% 8.06% 8.16% 24.30% 1.01 0.52 $248.00 0.66 0.30 1.96 0.43 -31.58 31.30 11.66 3.67 0.01 35.34 0.30 55,196.00 59,099.00 1.02 0.46 $363.00 0.68 0.38 2.17 0.61 -28.18 32.72 11.16 4.30 0.01 33.20 0.30 54.616.00 58,252.00 2017 11.33% 1.00% 2.15% 7.37% 7.47% 25.18% 0.99 0.43 S178.00 0.70 0.42 2.34 0.72 -30.68 32.08 11.38 4.05 0.05 26.69 1.46 54,084.00 510,354.00 | INC INC INC A B 1 COSTCO 2 RATIO CALCULATION 3 Gross Profit Margin= (Sales Rev-Cost of Goods sold)/Sales Revenue 4 Operating Profit Margin= (Sales Rev-operating expenses) sales revenue 5 Net Profit Margin- Profits>taxes/sales revenue 6 Total Return on Assets= (profits>taxes+interest)/total assets 7 Net return on total assets Profits taxes/total assets 8 Return on Stockholders equity Profitys>taxes/total stockholders equity 9 Current Ratio Current Assets/Current Liabilities 10 Quick Ratio= (Current Assets-Inventory) Current Liability 11 Working Capital Current Assets-Current Liabilities 12 Total Debt to Assets Total debt/total assets 13 Long Term debt to capital long term debt (long term debt+stockholders equity) 14 debt to equity- total debt total stockholders equity 15 long term debt to equity long term debt total stoickholders equity 16 times interest earned Operating income interests expense 17 Days of inventory Inventory (cost of goods sold/365) 18 Inventory Turnover Cost of goods sold/inventory 19 average collection period Accounts receivable (total sales/365) 20 Dividend yield on CS= annual dividends per share/current market price per share 21 Price to earnings current market price per share/earnings per share 22 Dividend payout annual dividends per share/earnings per share 23 internal cash flow after tax profits+depreciation 24 Free cash flow= after tax profits+depreciation-Capital Expenditures-dividends 25 26 sales revenue 27 cost of goods sold 28 operating expenses 29 taxes 30 profits > taxes 31 total stockholders equity 32 long term debt 33 current assets 34 current liabilities 35 total debt 36 total assets 37 Interest expense 38 operating income 39 interest income 40 accounts receiveables 41 annual dividends per share 42 current market price per share (9/18/17) 43 earnings per share 44 depreciation 45 capital expenditures 46 dividends 47 shares(000's) 48 Total sales 49 Inventory > Ratios Balance Sheet Income Statement Cash Flow Normal $ 126,172 $ 111,882 $ 124,914 $ 1,325 2,714 "S 149,351 5 132.886 $ 147,966 $ 1,061 $ 3,704 $ 15,243 $ 6,579 $ 23,485 $ 23.237 $ 29,816 $ 45,400 (150) $ 4,737 '(45) "S 138,434 "123,152 $ 137,096 "$ 1,263 $ 3,179 $ 12,799 $ 7,801 '$ 20.289 $ 19,926 $ 27,727 $ 40,830 "5 (159) "5 4,480 "(45) 5 1,669 ' 2.14 235.38 57.09 "1,437 "(2,947) $ 10,778 57,773 $ 17,317 $ 17,495 $ 25,268 36,347 "5 (134) $ 4,111 5 (35) 51,432 58.90 162.30 $ 1,535 $6.08 '2.44 ' 291.90 $ 8.26 $ 1,492 's (2,865) " (1,038) 442923 $ 152,703 5 11,395 (689) 11,370 'S (2,366) "S (3,904) 440937 '5 129,025 59,834 441834 $ 141,576 $ 11,040 + Enter , - + 100% AutoSave OFF X Project 1 -Saved to my Mac Q Search Sheet Home Insert Formulas Data Review View Share Page Layout fx D51 v D E F G H 1 1 J K L M B S MILLIONS 2019-12 2018-12 2017-12 $ 3,704 $ 1,492 53,179 $ 1,437 $ 2,714 "$ 1,370 "5 147 ' 595 (49) 5544 (29) 5514 " (536) (1,313) (894) 322 1623 51,561 $ 421 $ 2,258 5 807 (6) 139 56,356 "(14) 56,726 55,774 "S (2,998) "S (2,969) 's (2,502) A 1 COSTCO Statement of CASH FLOW 2 (Fiscal year ends in September. USD in millions except per share data.) 3 Cash Flows From Operating Activities 4 Net income 5 Depreciation & amortization Amortization of debt discount/premium and issuance costs 7 Investment/asset impairment charges 8 Deferred income taxes 9 Stock based compensation 10 Change in working capital 11 Accounts receivable 12 Inventory 13 Prepaid expenses 14 Accounts payable 15 Accrued liabilities 16 Other working capital 17 Other non-cash items 18 Net cash provided by operating activities 19 Cash Flows From Investing Activities 20 Investments in property, plant, and equipment 21 Acquisitions, net 22 Purchases of investments 23 Sales/Maturities of investments 24 Other investing activities 25 Net cash used for investing activities 26 Cash Flows From Financing Activities 27 Change in bank payment outstanding 28 Debt issued 29 Debt repayment 30 Excess tax benefit from stock based compensation 31 Repurchases of common stock 32 Dividend paid 33 Other financing activities 34 Net cash provided by (used for) financing activities 35 Effect of exchange rate changes 36 Net change in cash 37 Cash at beginning of period 38 Cash at end of period 39 Free Cash Flow 40 Operating cash flow 41 Capital expenditure 42 Free cash flow 43 44 45 46 47 48 49 (1,094) $ 1,231 'S (4) '(2,865) (1,060) $ 1,078 '54 " (2,947) "S (1,279) $ 1,385 's 30 "S (2,366) 5 80 5210 298 (89) (236) $ 3,782 's (2,200) (202) (272) (86) "5 (217) (328) 'S (469) 5 (689) $ (3,904) '(247) 5 (1,038) 's (9) (1,147) "s (15) "2,329 6,055 "$ 8,384 "(41) "(1,281) "5 (37) $ 1,509 "54,546 56,055 511 "5 (3,218) '$ 25 '1.167 $ 3,379 '$ 4,546 6,356 (2.865) $ 9,099 15,774 (2.947) 58,252 56,726 " (2,366) $ 10,354 Ratios Balance Sheet Income Statement Cash Flow + Ready a - + 100% AutoSave OFF X Project 1 -Saved to my Mac Q- Search Sheet Review View Share v v D E F G H 1 J K L M B IS MILLIONS 2019-12 2018-12 $ 149,351 $ 138,434 $ 3,352 $ 3.142 " 152,703 $ 141,576 5 147,966 $ 137,096 2017-12 $ 126,172 $ 2,853 5 129,025 $ 124,914 5 132,886 $ 14,994 586 5 123,152 5 13,876 's 68 15111,882 $ 12,950 '82 $ 147,966 's 4,737 (150) S 178 4,765 $ 1,061 '5 137,096 "$ 4,480 "5 (159) 5121 '54,442 $ 1.263 $ 124,914 54,111 's(134) 's 62 54.039 $ 1,325 53,179 53,704 " (45) Home Insert Page Layout Formulas Data A1 fx COSTCO INCOME STATEMENT A 1 1 COSTCO INCOME STATEMENT 2 Fiscal year ends in September. USD in Millions except per share data. 3 Net Sales 4 Membership fess 5 Revenue 6 Cost of revenue 7 Gross profit 8 Operating expenses 9 Merchandise Costs 10 Sales, General and administrative 11 Pre-opening expenses 12 Restructuring, merger and acquisition 13 Other operating expenses 14 Total operating expenses 15 Operating income 16 Interest Expense 17 Other income (expense) 18 Income before taxes 19 Provision for income taxes 20 Net income from continuing operations 21 Net income 22 Preferred dividend 23 Net income available to common shareholders 24 Earnings per share 25 Basic 26 Diluted 27 Weighted average shares outstanding (000's) 28 Basic 29 Diluted 30 EBITDA 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 's (45) $ 3,134 $ 2,714 5 (35) 52,679 5 3,659 8.32 8.26 7.15 7.09 6.11 6.08 439755 442923 $ 6,257 438515 441834 $ 5,879 438437 440937 $ 5,409 Ratios Balance Sheet Income Statement Cash Flow + Ready - + 100% AutoSave OFF X Project 1 -Saved to my Mac Qu Search Sheet Review View Share v D E F G H 1 J K L M B MILLIONS 2019-12 2018-12 2017-12 $ 8,384 56,055 '54,546 $ 1,060 "$ 1,535 5 11,395 $ 1,204 5 1,669 '11,040 $ 1,233 "$ 1,432 59.834 $ 1,111 $ 23,485 321 "520,289 272 $ 17,317 $ 32,626 (11,736) $ 20,890 $ 30,714 '5 (11,033) "5 19,681 "28,341 '(10,180) $ 18,161 Home Insert Page Layout Formulas Data A48 fx A 1 COSTCO BALANCE SHEET 2 Fiscal year ends in September. USD in Millions except per share data. 3 Assets: 4 Current assets: 5 Cash 6 Cash and cash equivalents 7 Total cash 8 Short-term investments 9 Receivables 10 Inventories 11 Deferred income taxes 12 Prepaid expenses 13 Other current assets 14 Total current assets 15 Non-current assets: 16 Property, plant and equipment: 17 Gross property, plant and equipment 18 Accumulated Depreciation 19 Net property, plant and equipment 20 Goodwill 21 Intangible assets 22 Deferred income taxes 23 Other long-term assets 24 Total non-current assets 25 Total assets 26 Liabilities and stockholders' equity 27 Liabilities 28 Current liabilities 29 Short-term debt 30 Accounts payable 31 Accrued liabilities 32 Other current liabilities 33 Total current liabilities 34 Non-current liabilities: 35 Long-term debt 36 Other long-term liabilities 37 Total non-current liabilities 38 Total liabilities 39 Stockholders' equity: 40 Common stock 41 Additional paid-in capital 42 Retained earnings 43 Accumulated other comprehensive income 44 Total stockholders' equity 45 Non controlling interests 46 Total Equity 47 Total liabilities and stockholders' equity 48 49 $ 1,025 S 860 $ 869 $ 45,400 $ 40,830 '36,347 51,711 $ 11,679 54,356 $ 5,491 $ 23,237 5 1,624 $11,237 '5 4,051 $ 3,014 "5 19,926 "5 1,498 59,608 13,664 52.725 $ 17,495 $ 5,124 $ 1,455 $ 6,579 5 29,816 6,487 $1,314 $ 7,801 $ 27,727 "5 6,573 5 1,200 57,773 '$ 25,268 4 $6,417 $ 10,258 's (1,436) $ 15,243 $ 341 5 15,584 545,400 4 56,107 $ 7,887 5 (1,199) $12.799 '$ 304 $ 13,103 's 40,830 4 $ 5,800 $ 5,988 " (1,014) $ 10,778 301 5 11,079 5 36,347 Ratios Balance Sheet Income Statement Cash Flow + - Ready + 100% AutoSave OFF Project 1 - Saved to my Mac Qu Search Sheet Home Formulas Data Review View Share Insert Page Layout A x fx A1 v D E F G H 1 J INDUSTRY (2018) Apparel, Footwear, Accesories 2018 11.04% 0.97% 2.30% 7.68% 7.79% 24.84% FROM 2018-2019 INC/DEC (+/-) DEC DEC INC INC INC DEC DEC INC DEC DEC DEC DEC DEC DEC DEC INC DEC $ MILLIONS 2019 11.02% 0.93% 2.48% 8.06% 8.16% 24.30% 1.01 0.52 $248.00 0.66 0.30 1.96 0.43 -31.58 31.30 11.66 3.67 0.01 35.34 0.30 55,196.00 59,099.00 1.02 0.46 $363.00 0.68 0.38 2.17 0.61 -28.18 32.72 11.16 4.30 0.01 33.20 0.30 54.616.00 58,252.00 2017 11.33% 1.00% 2.15% 7.37% 7.47% 25.18% 0.99 0.43 S178.00 0.70 0.42 2.34 0.72 -30.68 32.08 11.38 4.05 0.05 26.69 1.46 54,084.00 510,354.00 | INC INC INC A B 1 COSTCO 2 RATIO CALCULATION 3 Gross Profit Margin= (Sales Rev-Cost of Goods sold)/Sales Revenue 4 Operating Profit Margin= (Sales Rev-operating expenses) sales revenue 5 Net Profit Margin- Profits>taxes/sales revenue 6 Total Return on Assets= (profits>taxes+interest)/total assets 7 Net return on total assets Profits taxes/total assets 8 Return on Stockholders equity Profitys>taxes/total stockholders equity 9 Current Ratio Current Assets/Current Liabilities 10 Quick Ratio= (Current Assets-Inventory) Current Liability 11 Working Capital Current Assets-Current Liabilities 12 Total Debt to Assets Total debt/total assets 13 Long Term debt to capital long term debt (long term debt+stockholders equity) 14 debt to equity- total debt total stockholders equity 15 long term debt to equity long term debt total stoickholders equity 16 times interest earned Operating income interests expense 17 Days of inventory Inventory (cost of goods sold/365) 18 Inventory Turnover Cost of goods sold/inventory 19 average collection period Accounts receivable (total sales/365) 20 Dividend yield on CS= annual dividends per share/current market price per share 21 Price to earnings current market price per share/earnings per share 22 Dividend payout annual dividends per share/earnings per share 23 internal cash flow after tax profits+depreciation 24 Free cash flow= after tax profits+depreciation-Capital Expenditures-dividends 25 26 sales revenue 27 cost of goods sold 28 operating expenses 29 taxes 30 profits > taxes 31 total stockholders equity 32 long term debt 33 current assets 34 current liabilities 35 total debt 36 total assets 37 Interest expense 38 operating income 39 interest income 40 accounts receiveables 41 annual dividends per share 42 current market price per share (9/18/17) 43 earnings per share 44 depreciation 45 capital expenditures 46 dividends 47 shares(000's) 48 Total sales 49 Inventory > Ratios Balance Sheet Income Statement Cash Flow Normal $ 126,172 $ 111,882 $ 124,914 $ 1,325 2,714 "S 149,351 5 132.886 $ 147,966 $ 1,061 $ 3,704 $ 15,243 $ 6,579 $ 23,485 $ 23.237 $ 29,816 $ 45,400 (150) $ 4,737 '(45) "S 138,434 "123,152 $ 137,096 "$ 1,263 $ 3,179 $ 12,799 $ 7,801 '$ 20.289 $ 19,926 $ 27,727 $ 40,830 "5 (159) "5 4,480 "(45) 5 1,669 ' 2.14 235.38 57.09 "1,437 "(2,947) $ 10,778 57,773 $ 17,317 $ 17,495 $ 25,268 36,347 "5 (134) $ 4,111 5 (35) 51,432 58.90 162.30 $ 1,535 $6.08 '2.44 ' 291.90 $ 8.26 $ 1,492 's (2,865) " (1,038) 442923 $ 152,703 5 11,395 (689) 11,370 'S (2,366) "S (3,904) 440937 '5 129,025 59,834 441834 $ 141,576 $ 11,040 + Enter , - + 100%