the fist two pages are the questions

a. Free cash flow = Cash provided by operating activities - capital expenditures - debt repayments 1) Current year: 2) Last year: I b. Cash flow on Total Assets = Cash flow from operations/average total assets) 1) Current year: 2) Last Year: c. Cash coverage of growth = Cash flow from operations/Cash outflow for plant assets 1) Current year 2) Last year 4. Complete the following additional ratios with comments: G. Account Receivable Turnover = Sales/Average Accounts receivable H. Inventory Turnover = Cost of sales/Average inventory I. Day's Sales in Inventory J. Total Liabilities to Total Assets Ratios = Total liabilities/Total assets K. Profit Margin Ratio = Net Profit/Sales*100 L. Gross Margin Ratio = I a. Dividend payout ratio = Total cash dividends paid I Net income Current Year: Last year: ?b. Dividend yield = Dividends paid per share / Stock price at year-end (online research necessary) Current Year Last year ?c. Earnings per share (refer to book formula) Current Year Last year d. Price-earnings ratio = Market price per share of stock at year-end / Earnings per share Current Year Last year e. Return on common stockholders' equity = (Net income - preferred stock dividends) / Average common stockholders' equity Current Year Last Year ma Reading lic CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in millions) 52 Weeks Ended 52 Weeks Ended 53 Weeks Ended September 1, 2019 September 2 2018 September 3, 2017 CASH FLOWS FROM OPERATING ACTIVITIES 3,704 $ 3,179 5 2,714 1,492 1,437 1.370 Net Income including noncontrolling interests Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities Depreciation and amortization Stock-based compensation Other non-cash operating activities, net Deforred income taxes Changes in operating assets and abilities: Merchandise inventories 595 544 514 9 (6) (14) 147 (49) (291 (536) (3.313) (854) 322 1,561 2.250 623 421 807 6,356 5,774 6,726 (1094) (1.060) (1.270) 1.231 1078 1385 (2.998) (2.969) 2502 (4) 30 (2.865) (2.947) (2.356 Accounts payable Other operating assets and labios, net Netcash provided by operating activiti CASH FLOWS FROM INVESTING ACTIVITIES Purchases of short-term investments Matures and sales of short term investments Addition to property and equipment Other investing activities, nel Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Change in bank payments outstanding Proceeds from issuance of long-term dobit Repayments of long-term debt Tex withholdings on stock-based awards Repurchases of common stock Cash dividend payments Other financing acties, net Not cash used in financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS Net change in cash and cash equivalents CASH AND CASH EQUIVALENTS BEGINNING OF YEAR CASH AND CASH EQUIVALENTS END OF YEAR 210 80 (236) 298 3.782 (89) (86) 2.2003 (2723 (217) 200) (247) (325) (469) (1.038) 689) 3.904) 19) (41) (1.147) 11.281) (3.210 (15) (37) 25 2.320 1.509 1.167 6,055 4.546 3.370 8.364 s 8.055 4,345 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the year for Interest $ 143 5 131 locomeros, nel SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: 1.157 5 1.204 5 1,185 250 5 Cash dividend declared, but not yet paid 286 COSTCO WHOLESALE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (amounts in millions, except share, per share, and warehouse count data) CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) September 1, 2019 September 2, 2018 ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments $ Receivables.net 8,384 1,060 1.535 11,395 1,111 23,485 6,055 1,204 1,669 11,040 Merchandise inventories Other current assets 321 Total current assets 20,289 PROPERTY AND EQUIPMENT Land Buildings and improvements Equipment and fixtures Construction in progress 6,417 17,136 7,801 1,272 32,626 (11,736) 20,890 1,025 45,400 6,193 16,107 7.274 1.140 30,714 Less accumulated depreciation and amortization Net property and equipment OTHER ASSETS (11,033) 19,681 860 $ $ 40.830 S 11.679 $ TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable Accrued salaries and benefits Accrued member rewards Deferred membership fees Current portion of long-term debt Other current liabilities Total current liabilities LONG-TERM DEBT, excluding current portion OTHER LIABILITIES 3,176 1,180 1.711 1.699 3,792 23,237 5,124 1.455 29,816 11.237 2,994 1,057 1,624 90 2,924 19.926 6,487 1.314 27.727 Total liabilities COMMITMENTS AND CONTINGENCIES 0 4 EQUITY Preferred stock 50 01 par value 100.000.000 shares authorized, no shares issued and outstanding Common stock 5001 par value, 900,000 000 shares authorized: 439,625,000 and 438,189.000 shares issued and outstanding Additional paid-n capital Accumulated other comprehensive loss Retained earnings Total Costco stockholders equity Noncontrolling interests Total equity TOTAL LIABILITIES AND EQUITY $ 6,417 (1.436) 10.258 15,243 341 15,584 45,400 6.107 (1.199) 7.887 12.799 304 13,103 40.830 56F Clear E 12:25 AM 1 Apps M Gmail YouTube Maps Reading COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF EQUITY (amounts in millions) Common Stock Shares (000's) Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Total Costco Stockholders Equity Retained Earnings Amount Noncontrolling Interests Total Equity BALANCE AT AUGUST 28, 2016 437.524 $ 2$ 5.490 $ 1.099) 5 7686 $ 12.079 253 $ 12,332 1 2.679 2,679 35 2,714 85 85 13 08 1 518 518 518 Net income Foreign-currency translation adjustment and other, net Stock-based compensation Release of vested restricted stock units (RSUS), including tax effects Conversion of convertible notes Repurchases of common stock Cosh dividends declared and other BALANCE AT SEPTEMBER 3.2017 2,673 (165) (165) (165) 5 III 12.908) (432) (473) (473) 11 3.945) 3.945) (3.945) 437,204 5.800 (1.014) 5.088 10.778 301 11.070 3.134 3.134 45 u 3,179 1 (185) (183) (7) (1923 547 547 547 Net Income Foreign-currency translation adjustment and other net Stock-based compensation Reloace of vasted RSUS including tax offects Repurchases of common stock Cath dividends declared and other BALANCE AT SEPTEMBER 2, 2018 2.741 1 1 1 1 (217) 217 (1.756) (26) (296) (322) (322) 3 1939) (036) (35) 1971 438.189 6.107 11.199) 7.887 12.790 304 13.103 3.650 45 3,704 207 (237) Not income Foreign-currency translation amont and other net Stock-based compensation Release of vested RSUS including tax effects Repurchases of common (245) 596 55 55 2,533 (2721 (272) SO 11.097) 116) 231 6247 24 Cath dividends declared and other DALANCE AT SEPTEMBER 1.2010 (1057 (1.057) 11.057) 5 6.417 $ 5 15243 341 15.564 s de The accompanying notes are an integral part of these consolidated financial statements. 38 COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF INCOME (amounts in millions, except per share data) 52 Weeks Ended 52 Weeks Ended 53 Weeks Ended September 1, 2019 September 2, 2018 September 3, 2017 REVENUE Net sales $ $ 138,434 S 149,351 3,352 126,172 Membership fees Total revenue 3.142 2.853 152.703 141,576 129.025 OPERATING EXPENSES 132.886 123,152 111,882 14,994 13,876 12.950 86 68 82 4,737 4,480 4.111 (159) Merchandise costs Seling, 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: (150) 178 (134) 62 121 4.765 4,442 4,039 1,061 1.263 1,325 3,704 2.714 (45) 3,659 3,179 (45) 3.134 $ (35) 2,679 S $ Basic $ 8.32 $ 6.11 Diluted 7 15$ 7.09 $ $ 8.26 $ 6.08 Shares used in calculation (000's) Basic 439,755 438,515 438,437 Diluted 442,923 441,834 440,937 The accompanying notes are an integral part of these consolidated financial statements, a. Free cash flow = Cash provided by operating activities - capital expenditures - debt repayments 1) Current year: 2) Last year: I b. Cash flow on Total Assets = Cash flow from operations/average total assets) 1) Current year: 2) Last Year: c. Cash coverage of growth = Cash flow from operations/Cash outflow for plant assets 1) Current year 2) Last year 4. Complete the following additional ratios with comments: G. Account Receivable Turnover = Sales/Average Accounts receivable H. Inventory Turnover = Cost of sales/Average inventory I. Day's Sales in Inventory J. Total Liabilities to Total Assets Ratios = Total liabilities/Total assets K. Profit Margin Ratio = Net Profit/Sales*100 L. Gross Margin Ratio = I a. Dividend payout ratio = Total cash dividends paid I Net income Current Year: Last year: ?b. Dividend yield = Dividends paid per share / Stock price at year-end (online research necessary) Current Year Last year ?c. Earnings per share (refer to book formula) Current Year Last year d. Price-earnings ratio = Market price per share of stock at year-end / Earnings per share Current Year Last year e. Return on common stockholders' equity = (Net income - preferred stock dividends) / Average common stockholders' equity Current Year Last Year ma Reading lic CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in millions) 52 Weeks Ended 52 Weeks Ended 53 Weeks Ended September 1, 2019 September 2 2018 September 3, 2017 CASH FLOWS FROM OPERATING ACTIVITIES 3,704 $ 3,179 5 2,714 1,492 1,437 1.370 Net Income including noncontrolling interests Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities Depreciation and amortization Stock-based compensation Other non-cash operating activities, net Deforred income taxes Changes in operating assets and abilities: Merchandise inventories 595 544 514 9 (6) (14) 147 (49) (291 (536) (3.313) (854) 322 1,561 2.250 623 421 807 6,356 5,774 6,726 (1094) (1.060) (1.270) 1.231 1078 1385 (2.998) (2.969) 2502 (4) 30 (2.865) (2.947) (2.356 Accounts payable Other operating assets and labios, net Netcash provided by operating activiti CASH FLOWS FROM INVESTING ACTIVITIES Purchases of short-term investments Matures and sales of short term investments Addition to property and equipment Other investing activities, nel Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Change in bank payments outstanding Proceeds from issuance of long-term dobit Repayments of long-term debt Tex withholdings on stock-based awards Repurchases of common stock Cash dividend payments Other financing acties, net Not cash used in financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS Net change in cash and cash equivalents CASH AND CASH EQUIVALENTS BEGINNING OF YEAR CASH AND CASH EQUIVALENTS END OF YEAR 210 80 (236) 298 3.782 (89) (86) 2.2003 (2723 (217) 200) (247) (325) (469) (1.038) 689) 3.904) 19) (41) (1.147) 11.281) (3.210 (15) (37) 25 2.320 1.509 1.167 6,055 4.546 3.370 8.364 s 8.055 4,345 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the year for Interest $ 143 5 131 locomeros, nel SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: 1.157 5 1.204 5 1,185 250 5 Cash dividend declared, but not yet paid 286 COSTCO WHOLESALE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (amounts in millions, except share, per share, and warehouse count data) CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) September 1, 2019 September 2, 2018 ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments $ Receivables.net 8,384 1,060 1.535 11,395 1,111 23,485 6,055 1,204 1,669 11,040 Merchandise inventories Other current assets 321 Total current assets 20,289 PROPERTY AND EQUIPMENT Land Buildings and improvements Equipment and fixtures Construction in progress 6,417 17,136 7,801 1,272 32,626 (11,736) 20,890 1,025 45,400 6,193 16,107 7.274 1.140 30,714 Less accumulated depreciation and amortization Net property and equipment OTHER ASSETS (11,033) 19,681 860 $ $ 40.830 S 11.679 $ TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable Accrued salaries and benefits Accrued member rewards Deferred membership fees Current portion of long-term debt Other current liabilities Total current liabilities LONG-TERM DEBT, excluding current portion OTHER LIABILITIES 3,176 1,180 1.711 1.699 3,792 23,237 5,124 1.455 29,816 11.237 2,994 1,057 1,624 90 2,924 19.926 6,487 1.314 27.727 Total liabilities COMMITMENTS AND CONTINGENCIES 0 4 EQUITY Preferred stock 50 01 par value 100.000.000 shares authorized, no shares issued and outstanding Common stock 5001 par value, 900,000 000 shares authorized: 439,625,000 and 438,189.000 shares issued and outstanding Additional paid-n capital Accumulated other comprehensive loss Retained earnings Total Costco stockholders equity Noncontrolling interests Total equity TOTAL LIABILITIES AND EQUITY $ 6,417 (1.436) 10.258 15,243 341 15,584 45,400 6.107 (1.199) 7.887 12.799 304 13,103 40.830 56F Clear E 12:25 AM 1 Apps M Gmail YouTube Maps Reading COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF EQUITY (amounts in millions) Common Stock Shares (000's) Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Total Costco Stockholders Equity Retained Earnings Amount Noncontrolling Interests Total Equity BALANCE AT AUGUST 28, 2016 437.524 $ 2$ 5.490 $ 1.099) 5 7686 $ 12.079 253 $ 12,332 1 2.679 2,679 35 2,714 85 85 13 08 1 518 518 518 Net income Foreign-currency translation adjustment and other, net Stock-based compensation Release of vested restricted stock units (RSUS), including tax effects Conversion of convertible notes Repurchases of common stock Cosh dividends declared and other BALANCE AT SEPTEMBER 3.2017 2,673 (165) (165) (165) 5 III 12.908) (432) (473) (473) 11 3.945) 3.945) (3.945) 437,204 5.800 (1.014) 5.088 10.778 301 11.070 3.134 3.134 45 u 3,179 1 (185) (183) (7) (1923 547 547 547 Net Income Foreign-currency translation adjustment and other net Stock-based compensation Reloace of vasted RSUS including tax offects Repurchases of common stock Cath dividends declared and other BALANCE AT SEPTEMBER 2, 2018 2.741 1 1 1 1 (217) 217 (1.756) (26) (296) (322) (322) 3 1939) (036) (35) 1971 438.189 6.107 11.199) 7.887 12.790 304 13.103 3.650 45 3,704 207 (237) Not income Foreign-currency translation amont and other net Stock-based compensation Release of vested RSUS including tax effects Repurchases of common (245) 596 55 55 2,533 (2721 (272) SO 11.097) 116) 231 6247 24 Cath dividends declared and other DALANCE AT SEPTEMBER 1.2010 (1057 (1.057) 11.057) 5 6.417 $ 5 15243 341 15.564 s de The accompanying notes are an integral part of these consolidated financial statements. 38 COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF INCOME (amounts in millions, except per share data) 52 Weeks Ended 52 Weeks Ended 53 Weeks Ended September 1, 2019 September 2, 2018 September 3, 2017 REVENUE Net sales $ $ 138,434 S 149,351 3,352 126,172 Membership fees Total revenue 3.142 2.853 152.703 141,576 129.025 OPERATING EXPENSES 132.886 123,152 111,882 14,994 13,876 12.950 86 68 82 4,737 4,480 4.111 (159) Merchandise costs Seling, 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: (150) 178 (134) 62 121 4.765 4,442 4,039 1,061 1.263 1,325 3,704 2.714 (45) 3,659 3,179 (45) 3.134 $ (35) 2,679 S $ Basic $ 8.32 $ 6.11 Diluted 7 15$ 7.09 $ $ 8.26 $ 6.08 Shares used in calculation (000's) Basic 439,755 438,515 438,437 Diluted 442,923 441,834 440,937 The accompanying notes are an integral part of these consolidated financial statements