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Profitability Consolidated statements of earning For Fiscal Years Ended ($ millions) August 28, 2016 August 30, 2015 August 31, 2014 Revenue Net Sales $116,073 $113,666
Profitability
Consolidated statements of earning
For Fiscal Years Ended ($ millions) | August 28, 2016 | August 30, 2015 | August 31, 2014 |
---|---|---|---|
Revenue | |||
Net Sales | $116,073 | $113,666 | $110,212 |
Membership fees | 2,646 | 2,533 | 2,428 |
Total revenue | 118,719 | 116,199 | 112,640 |
Operating expenses | |||
Merchandise costs | 102,901 | 101,065 | 98,458 |
Selling, general and administrative | 12,068 | 11,445 | 10,899 |
Preopening expenses | 78 | 65 | 63 |
Operating Income | 3,672 | 3,624 | 3,220 |
Other income (expense) | |||
Interest expense | (133) | (124) | (113) |
Interest income and other, net | 80 | 104 | 90 |
Income before income taxes | 3,619 | 3,604 | 3,197 |
Provision for income taxes | 1,243 | 1,195 | 1,109 |
Net income including noncontrolling interests | 2,376 | 2,409 | 2,088 |
Net income attributable to noncontrolling interests | (26) | (32) | (30) |
Net income attributable to Costco | $2,350 | $2,377 | $2,058 |
Consolidated balance sheet
($ millions, except par value and share data) | August 28, 2016 | August 30, 2015 |
---|---|---|
Assets | ||
Current assets | ||
Cash and cash equivalents | $3,379 | $4,801 |
Short-term investments | 1,350 | 1,618 |
Receivables, net | 1,252 | 1,224 |
Merchandise inventories | 8,969 | 8,908 |
Deferred income taxes and other current assets | 268 | 228 |
Total current assets | 15,218 | 16,779 |
Property and equipment | ||
Land | 5,395 | 4,961 |
Buildings and improvements | 13,994 | 12,618 |
Equipment and fixtures | 6,077 | 5,274 |
Construction in progress | 701 | 811 |
Gross property and equipment | 26,167 | 23,664 |
Less accumulated depreciation and amortization | (9,124) | (8,263) |
Net property and equipment | 17,043 | 15,401 |
Other assets | 902 | 837 |
Total assets | $33,163 | $33,017 |
Liabilities and equity | ||
Current liabilities | ||
Accounts payable | $7,612 | $9,011 |
Current portion long-term debt | $1,100 | $1,283 |
Accrued salaries and benefits | 2,629 | 2,468 |
Accrued member rewards | 869 | 813 |
Deferred membership fees | 1,362 | 1,269 |
Other current liabilities | 2,003 | 1,695 |
Total current liabilities | 15,575 | 16,539 |
Long-term debt, excluding current portion | 4,061 | 4,852 |
Other liabilities | 1,195 | 783 |
Total liabilities | 20,831 | 22,174 |
Equity | ||
Preferred stock, $0.005 par value: | ||
100,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.005 par value: | ||
900,000,000 shares authorized; | ||
437,524,000 and 437,952,000 shares issued and outstanding | 2 | 2 |
Additional paid-in-capital | 5,490 | 5,218 |
Accumulated other comprehensive loss | (1,099) | (1,121) |
Retained earnings | 7,686 | 6,518 |
Total Costco stockholders equity | 12,079 | 10,617 |
Noncontrolling interests | 253 | 226 |
Total equity | 12,332 | 10,843 |
Total liabilities and equity | $33,163 | $33,01 |
A. Compute adjusted ROA (assume a statury tax rate of 37%).
Adjusted ROA = ?
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