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The table is given below answer the question. For Fiscal Years Ended ($ millions) Total revenue Operating expenses Merchandise costs Selling, general and administrative Preopening
The table is given below answer the question.
For Fiscal Years Ended ($ millions) 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 September 2, 2018 $142,709 124,285 13,876 1,201 3,347 (c) Compute Costco's RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Numerator Denominator RNOA $ 159 (121) Numerator Denominator NOPM 3,309 05 Provision for income taxes 1,263 Net income including noncontrolling interests 2,046 Numerator Denominator NOAT Net income attributable to noncontrolling interests Net income attributable to Costco (45) $2,001 (d) Compute net nonoperating obligations (NNO) for 2018 and 2017. Confirm the relation: NOA = NNO + Total equity. Costco Wholesale Corporation Consolidated Balance Sheets Year NNO 2018 $ 2017 $ 0 0 ($ millions, except par value and share data) September September 2,2018 3, 2017 Year NNO Total equity NOA Current assets 2018 $ 05 05 Cash and cash equivalents $6,055 $5,679 2017 $ 05 05 0 Short-term investments 2,337 1,233 (e) Compute return on equity (ROE) for 2018. Receivables, net 1,669 1,432 Numerator Denominator ROE Merchandise inventories 11,040 10,967 Other current assets 1,454 272 Total current assets 22,555 19,583 (f) Infer the nonoperating return component of ROE for 2018. Net property and equipment 20,814 18,161 ROE Other assets 860 869 RNOA 0% Nonoperating component of ROE 0% Total assets $44,229 $38,613 Current liabilities Accounts payable $11,237 $9,608 Accrued salaries and benefits 2,994 3,836 Accrued member rewards 1,057 2,094 Deferred membership fees 2,757 1,498 Other current liabilities 3,014 2,725 Total current liabilities 21,059 19,761 Long-term debt 7,620 7,706 Other liabilities 2,447 1,200 Total liabilities 31,126 28,667 Equity Preferred stock, $0.01 par value: 0 Common stock, $0.01 par value: 4 4 Additional paid-in-capital 6,107 4,667 Accumulated other comprehensive loss (1,199) (1,014) Retained earnings 7,887 5,988 Total Costco stockholders' equity 12,799 9,645 Noncontrolling interests 304 Total equity 13,103 301 9,946 Total liabilities and equity $44,229 $38,613 Combined federal and state statutory tax rate 22%
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