Pe ator eopl Insi resu Find online the annual 10-K report for Costco Wholesale Corporation (COST) as of September 1, 2019 a. Compute Costco's net profit margin, total asset turnover, and equity multiplier. b. Verify the DuPont Identity for Costco's ROE. c. If Costco's managers wanted to increase its ROE by 1.5 percentage point, how much higher would their asset turnover need to be? a. Compute Costco's net profit margin, total asset turnover, and equity multiplier. The net profit margin is 1%. (Round to two decimal places.) The total asset turnover is . (Round to two decimal places.) The equity multiplier is (Round to two decimal places.) b. Verify the DuPont Identity forCostco's ROE. The ROE is % (Round to two decimal places.) c. If Costco's managers wanted to increase its ROE by 1.5 percentage point, how much higher would their asset turnover need to be? The total assets turnover should be (Round to two decimal places.) The total asset turnover should be % (Round to two decimal places and select from the drop-down menu.) September 2, 2018 $ 6,055 1,204 1,669 11.040 321 20,289 6,193 16,107 7,274 1,140 30,714 (11,033) 19,681 860 40,830 $ COSTCO WHOLESALE CORPORATION CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) September 1, 2019 ASSETS CURRENT ASSETS Cash and cash equivalents $ 8,384 Short-term investments 1,060 Receivables, net 1.535 Merchandise inventories 11,395 Other current assets 1,111 Total current assets 23,485 PROPERTY AND EQUIPMENT Land 6,417 Buildings and improvements 17,136 Equipment and fixtures 7,801 Construction in progress 1,272 32,626 Less accumulated depreciation and amortization (11.736) Net property and equipment.. 20,890 OTHER ASSETS 1,025 TOTAL ASSETS $ 45,400 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable 11,679 Accrued salaries and benefits 3,176 Accrued member rewards 1,180 Deferred membership fees 1,711 Current portion of long-term debt 1,699 Other current liabilities 3,792 Total current liabilities 23,237 LONG-TERM DEBT, excluding current portion 5,124 OTHER LIABILITIES 1,455 Total liabilities 29,816 COMMITMENTS AND CONTINGENCIES EQUITY Preferred stock $0.01 par value; 100,000,000 shares authorized; no shares issued and outstanding 0 Common stock $0.01 par value; 900,000,000 shares authorized: 439,625,000 and 438,189,000 shares issued and outstanding 4 Additional paid-in capital 6,417 Accumulated other comprehensive loss (1.436) Retained earnings 10,258 Total Costco stockholders' equity 15,243 Noncontrolling interests 341 Total equity 15,584 TOTAL LIABILITIES AND EQUITY 45.400 $ $ 11,237 2,994 1,057 1,624 90 2,924 19,926 6,487 1,314 27.727 0 4 6,107 (1.199) 7,887 12.799 304 13,103 40,830 $ COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF INCOME (amounts in millions, except per share data) 52 Weeks Ended September 1, 52 Weeks Ended September 2, 2018 53 Weeks Ended September 3, 2017 2019 149,351 $ 3,352 152.703 138,434 $ 3,142 141,576 126,172 2,853 129,025 132,886 14,994 86 4.737 123,152 13,876 68 4,480 111,882 12,950 82 4,111 REVENUE Net sales. Membership fees Total revenue OPERATING EXPENSES Merchandise costs Selling, general and administrative Preopening expenses Operating income OTHER INCOME (EXPENSE) Interest expense. Interest income and other, net INCOME BEFORE INCOME TAXES, Provision for income taxes Net income including noncontrolling interests. Net income attributable to noncontrolling interests... NET INCOME ATTRIBUTABLE TO COSTCO NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic Diluted Shares used in calculation (000's) Basic Diluted (150) 178 4,765 1,061 3,704 (159) 121 4,442 1,263 3,179 (134) 62 4,039 1,325 2,714 (45) (45) 3,134 $ (35) 2,679 $ 3,659 $ 8.32 $ 8.26 $ 7.15 $ 7.09 $ 6.11 6.08 439,755 442.923 438,515 441,834 438,437 440,937