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	$164,286	$152,277
Membership fees	3,687	3,456
Total revenue	167,973	155,733
Merchandise costs	146,175	135,467
Selling, general and administrative	16,493	15,264
Preopening expenses	95	75
Operating income	5,210	4,927
Interest expense	(165)	(175)
Interest income and other, net	196	133
Income before income taxes	5,241	4,885
Provision for income taxes	1,167	1,389
Net income including noncontrolling interests	4,074	3,496
Net income attributable to noncontrolling interests	(50)	(50)
Net income attributable to Costco	$4,024	$3,446

COSTCO WHOLESALE CORP

Consolidated Balance Sheet

For Year Ended ($ millions) Sep. 1, 2019 Sep. 2, 2018

Current Assets
Cash and cash equivalents	$9,221	$6,660
Short-term investments	1,166	1,324
Receivables, net	1,689	1,836
Merchandise inventories	12,535	12,144
Other current assets	1,222	353
Total current assets	25,833	22,317
Property and Equipment
Land	7,059	6,812
Buildings and improvements	18,850	17,718
Equipment and fixtures	8,581	8,001
Construction in progress	1,399	1,254
Gross property and equipment	35,889	33,785
Less accumulated depreciation and amortization	(12,910)	(12,136)
Net property and equipment	22,979	21,649
Other assets	1,128	946
Total assets	$49,940	$44,912
Current Liabilities
Accounts payable	$12,847	$12,361
Accrued salaries and benefits	3,494	3,293
Accrued member rewards	1,298	1,163
Deferred membership fees	1,882	1,786
Current portion of long-term debt	1,869	99
Other current liabilities	4,171	3,216
Total current liabilities	25,561	21,918
Long-term debt, excluding current portion	5,636	7,136
Other liabilities	1,601	1,445
Total liabilities	32,798	30,499
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	7,059	6,718
Accumulated other comprehensive loss	(1,580)	(1,319)
Retained earnings	11,284	8,676
Total Costco stockholders' equity	16,767	14,079
Noncontrolling interests	375	334
Total equity	17,142	14,413
Total liabilities and equity	$49,940	$44,912

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 $1,869 million and $1,203 million, respectively. The company anticipates repurchasing $275 million in common stock in fiscal 2020. The 2019 statement of cash flows reports the following: Depreciation expense of $1,641 million Dividends of $1,142 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 $655 million CAPEX of $3,298 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

$ millions Sep. 01, 2020

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

$ millions Sep. 01, 2020

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

$ millions Sep. 01, 2020

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