Forecast the Income Statement, Balance Sheet, and Statement of Cash Flows 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	$149,351	$138,434
Membership fees	3,352	3,142
Total revenue	152,703	141,576
Merchandise costs	132,886	123,152
Selling, general and administrative	14,994	13,876
Preopening expenses	86	68
Operating income	4,737	4,480
Interest expense	(150)	(159)
Interest income and other, net	178	121
Income before income taxes	4,765	4,442
Provision for income taxes	1,061	1,263
Net income including noncontrolling interests	3,704	3,179
Net income attributable to noncontrolling interests	(45)	(45)
Net income attributable to Costco	$3,659	$3,134

COSTCO WHOLESALE CORP
Consolidated Balance Sheets
In millions, except par value	Sep. 1, 2019	Sep. 2, 2018
Current Assets
Cash and cash equivalents	$8,384	$6,055
Short-term investments	1,060	1,204
Receivables, net	1,535	1,669
Merchandise inventories	11,395	11,040
Other current assets	1,111	321
Total current assets	23,485	20,289
Property and Equipment
Land	6,417	6,193
Buildings and improvements	17,136	16,107
Equipment and fixtures	7,801	7,274
Construction in progress	1,272	1,140
Gross property and equipment	32,626	30,714
Less accumulated depreciation and amortization	(11,736)	(11,033)
Net property and equipment	20,890	19,681
Other assets	1,025	860
Total assets	$45,400	$40,830
Current Liabilities
Accounts payable	$11,679	$11,237
Accrued salaries and benefits	3,176	2,994
Accrued member rewards	1,180	1,057
Deferred membership fees	1,711	1,624
Current portion of long-term debt	1,699	90
Other current liabilities	3,792	2,924
Total current liabilities	23,237	19,926
Long-term debt, excluding current portion	5,124	6,487
Other liabilities	1,455	1,314
Total liabilities	29,816	27,727
Equity
Preferred stock $.01 par value;
100,000,000 shares authorized*
Common stock $0.01 par value;
900,000,000 shares authorized**	4	4
Additional paid-in capital	6,417	6,107
Accumulated other comprehensive loss	(1,436)	(1,199)
Retained earnings	10,258	7,887
Total Costco stockholders' equity	15,243	12,799
Noncontrolling interests	341	304
Total equity	15,584	13,103
Total liabilities and equity	$45,400	$40,830

*no shares issued and outstanding ** 439,625,000 and 438,189,000 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 $1,699 million and $1,094 million, respectively. The company anticipates repurchasing $250 million in common stock in fiscal 2020. The 2019 statement of cash flows reports the following: Depreciation expense of $1,492 million Dividends of $1,038 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 $595 million CAPEX of $2,998 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