ACCT 5315 TA&M Balance Sheet and Income Statement Costco Wholesale Exam Practice

I need help with a Accounting question. All explanations and answers will be used to help me learn.

Using the attached balance sheet and income statement, answer the following.

In 2018, Costco’s return on equity (ROE) is 26.59% and its return on net operating assets (RNOA) is 26.52%. Assume that the combined federal and state statutory tax rate is 22%.

a. Compute net nonoperating expense (NNE) and net operating profit after tax (NOPAT). Round to the nearest whole number, if applicable.
2018 NNE million

2018 NOPAT million

b. Compute net nonoperating obligations (NNO) for 2018 and 2017.
2018 NNO million

2017 NNO million

c. Compute financial leverage (FLEV). Round answer to four decimal places.
2018 FLEV


d. Compute NNEP and Spread. Round answers to two decimal places (example: 0.12345 = 12.35%).
2018 NNEP %

2018 Spread %

e. Compute the noncontrolling interest ratio (NCI ratio). Round answer to four decimal places.
2018 NCI Ratio


f. Confirm the relation: ROE = [RNOA + (FLEV × Spread)] × NCI ratio.
2018 ROE =% = [ % +( X %)] X


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