Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help please asap. Please and thank you. Both screenshot are same question begin{tabular}{|c|c|c|} hline multicolumn{3}{|c|}{ Costco Wholesale Corporation } hline multicolumn{3}{|c|}{ Consolidated Balance Sheets
Help please asap. Please and thank you. Both screenshot are same question
\begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Costco Wholesale Corporation } \\ \hline \multicolumn{3}{|c|}{ Consolidated Balance Sheets } \\ \hline (\$ millions, except par value and share data) & \begin{tabular}{|c|} September \\ 2, 2018 \\ \end{tabular} & September3,2017 \\ \hline \multicolumn{3}{|l|}{ Current assets } \\ \hline Cash and cash equivalents & $6,055 & $4,546 \\ \hline Short-term investments & 1,204 & 1,233 \\ \hline Receivables, net & 1,669 & 1,432 \\ \hline Merchandise inventories & 11,040 & 9,834 \\ \hline Other current assets & 321 & 272 \\ \hline Total current assets & 20,289 & 17,317 \\ \hline Net property and equipment & 19,681 & 18,161 \\ \hline Other assets & 860 & 869 \\ \hline Total assets & $40,830 & $36,347 \\ \hline \multicolumn{3}{|l|}{ Current liabilities } \\ \hline Accounts payable & $11,237 & $9,608 \\ \hline Accrued salaries and benefits & 2,994 & 2,703 \\ \hline Accrued member rewards & 1,057 & 961 \\ \hline Deferred membership fees & 1,624 & 1,498 \\ \hline Other current liabilities & 3,014 & 2,725 \\ \hline Total current liabilities & 19,926 & 17,495 \\ \hline Long-term debt & 6,487 & 6,573 \\ \hline Other liabilities & 1,314 & 1,200 \\ \hline Total liabilities & 27,727 & 25,268 \\ \hline \multicolumn{3}{|l|}{ Equity } \\ \hline Preferred stock, \$0.01 par value: & 0 & 0 \\ \hline Common stock, \$0.01 par value: & 4 & 4 \\ \hline Additional paid-in-capital & 6,107 & 5,800 \\ \hline Accumulated other comprehensive loss & (1,199) & (1,014) \\ \hline Retained earnings & 7,887 & 5,988 \\ \hline Total Costco stockholders' equity & 12,799 & 10,778 \\ \hline Noncontrolling interests & 304 & 301 \\ \hline Total equity & 13,103 & 11,079 \\ \hline Total liabilities and equity & $40,830 & $36,347 \\ \hline \end{tabular} (a) Compute Costco's current ratio and quick ratio for 2018 and 2017. (Round answers two decimal places.) 2018 current ratio = 2017 current ratio = 2018 quick ratio = 2017 quick ratio = 2018 times interest earned = 2017 times interest earned = 2018 liabilities-to-equity = 2017 liabilities-to-equity = (c) Summarize your findings about the company's liquidity and solvency. Do you have any concerns about Costco's ability to meet its debt obligations? OCostco's liabilities-to-equity ratio decreased thus its solvency has declined. OCostco's times interest earned is high thus there is concern for Costco's solvency. Ocostco's quick and current ratios slightly increased therefore its liquidity has declined. Ocostco's times interest earned ratio is high thus solvency is not a concern for Costco
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started