Following are fiscal year financial statements of Costco.

COSTCO WHOLESALE CORP
Consolidated Statements of Income
For Year Ended ($ millions)	Sep. 1, 2019	Sep. 2, 2018
Net sales	$298,702	$276,868
Membership fees	6,704	6,284
Total revenue	305,406	283,152
Merchandise costs	265,772	246,304
Selling, general and administrative	29,988	27,752
Preopening expenses	172	136
Operating income	9,474	8,960
Interest expense	(300)	(318)
Interest income and other, net	356	242
Income before income taxes	9,530	8,884
Provision for income taxes	2,122	2,526
Net income including noncontrolling interests	7,408	6,358
Net income attributable to noncontrolling interests	(90)	(90)
Net income attributable to Costco	$7,318	$6,268

COSTCO WHOLESALE CORP
Consolidated Balance Sheets
In millions, except par value	Sep. 1, 2019	Sep. 2, 2018
Current Assets
Cash and cash equivalents	$16,768	$12,110
Short-term investments	2,120	2,408
Receivables, net	3,070	3,338
Merchandise inventories	22,790	22,080
Other current assets	2,222	642
Total current assets	46,970	40,578
Property and Equipment
Land	12,834	12,386
Buildings and improvements	34,272	32,214
Equipment and fixtures	15,602	14,548
Construction in progress	2,544	2,280
Gross property and equipment	65,252	61,428
Less accumulated depreciation and amortization	(23,472)	(22,066)
Net property and equipment	41,780	39,362
Other assets	2,050	1,720
Total assets	$90,800	$81,660
Current Liabilities
Accounts payable	$23,358	$22,474
Accrued salaries and benefits	6,352	5,988
Accrued member rewards	2,360	2,114
Deferred membership fees	3,422	3,248
Current portion of long-term debt	3,398	180
Other current liabilities	7,584	5,848
Total current liabilities	46,474	39,852
Long-term debt, excluding current portion	10,248	12,974
Other liabilities	2,910	2,628
Total liabilities	59,632	55,454
Equity
Preferred stock $.01 par value;
100,000,000 shares authorized*
Common stock $0.01 par value;
900,000,000 shares authorized**	8	8
Additional paid-in capital	12,834	12,214
Accumulated other comprehensive loss	(2,872)	(2,398)
Retained earnings	20,516	15,774
Total Costco stockholders' equity	30,486	25,598
Noncontrolling interests	682	608
Total equity	31,168	26,206
Total liabilities and equity	$90,800	$81,660

*no shares issued and outstanding ** 879,250,000 and 876,378,000 shares issued and outstanding

Required Forecast Costcos income statement, balance sheet, and statement of cash flows for the year ended September 1, 2020. Combine all property and equipment accounts into Net property and equipment. Forecasts assumptions Forecast Net sales and Membership fees using their respective historical growth rates (2018 to 2019). Forecast the following as a percentage of Net sales: Merchandise costs Receivables, net Merchandise inventories Accounts payable Accrued member rewards Forecast income tax as 23% of pretax income Forecast Deferred membership fees as a percentage of Membership fees. Assume no change in the balance of the following: Preopening expenses Interest expense Interest income Net income attributable to noncontrolling interest Short-term investments Preferred stock Common stock Accumulated other comprehensive loss Debt maturing in fiscal 2020 and 2021 is $3,398 million and $2,188 million, respectively. The company anticipates repurchasing $500 million in common stock in fiscal 2020. The 2019 statement of cash flows reports the following: Depreciation expense of $2,984 million Dividends of $2,076 million (to forecast 2020 dividends, use the 2019 dividend payout ratio as a percentage of net income attributable to Costco shareholders) Stock-based compensation (a noncash expense that is included in SG&A expense and is added to Additional paid-in capital) of $1,190 million CAPEX of $5,996 million Forecast all other items as a percentage of total revenues. Note: Round historical rates used in calculations to three decimal places. For example, assume that Actual Merchandise inventories divided Actual Net sales equals 0.076297. This factor should be rounded to 7.6% before computing your forecasted amount for Merchandise inventories. Note: Round your final answers below to the nearest whole dollar.

COSTCO WHOLESALE CORP
Forecasted Income Statement
For the year ended
	Sep. 01, 2020
$ millions	Forecast
Net sales	Answer
Membership fees	Answer
Total revenues	Answer
Expenses
Merchandise cost	Answer
Selling, general and administrative	Answer
Preopening expenses	Answer
Operating income	Answer
Interest expense	Answer
Interest income and other, net	Answer
Income before income taxes	Answer
Provision for income taxes	Answer
Net income including noncontrolling interests	Answer
Net income attributable to noncontrolling	Answer
Net income attributable to Costco	Answer

COSTCO WHOLESALE CORP
Balance Sheet
	Sep. 01, 2020
$ millions	Forecast
Cash and cash equivalents	Answer
Short-term investments	Answer
Receivables, net	Answer
Merchandise inventories	Answer
Other current assets	Answer
Total current assets	Answer
Net property and equipment	Answer
Other assets	Answer
Total assets	Answer
Accounts payable	Answer
Accrued salaries and benefits	Answer
Accrued member rewards	Answer
Deferred memberships fees	Answer
Current portion of long-term debt	Answer
Other current liabilities	Answer
Total current liabilities	Answer
Long term debt, excluding current portion	Answer
Other liabilities	Answer
Total liabilities	Answer
Preferred stock	Answer
Common stock	Answer
Additional paid-in capital	Answer
Accumulated other comprehensive loss	Answer
Retained earnings	Answer
Treasury stock	Answer
Total Costco stockholders' equity	Answer
Noncontrolling interests	Answer
Total equity	Answer
Total liabilities and equity	Answer

COSTCO WHOLESALE CORP
Forecasted Statement of Cash Flow
For the year ended	Sep. 01, 2020
$ millions	Forecast
Net income including noncontrolling interests	Answer
Add: Depreciation	Answer
Add: Stock-based compensation	Answer
Receivables, net	Answer
Merchandise inventories	Answer
Other current assets	Answer
Other assets	Answer
Accounts payable	Answer
Accrued salaries and benefits	Answer
Accrued member rewards	Answer
Deferred membership fees	Answer
Other current liabilities	Answer
Other liabilities	Answer
Net cash from operating activities	Answer
Capital Expenditures	Answer
Net cash from investing activities	Answer
Dividends	Answer
Change in current maturities of L-T debt	Answer
Change in L-T Debt	Answer
Stock repurchases	Answer
Net cash from financing activities	Answer
Net change in cash	Answer
Beginning cash	Answer
Ending cash	Answer