Question

COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF INCOME (amounts in millions, except per share data) 3,672 (134) 52 Weeks Ended 53 Weeks Ended 52 Weeks Ended September 2, September 3, August 28, 2018 2017 2016 REVENUE Net sales 138,434 $ 126,172 $ 116,073 Membership fees..... 3,142 2,853 2,646 Total revenue ....... 141,576 129,025 118,719 OPERATING EXPENSES Merchandise costs 123,152 111,882 102,901 Selling, general and administrative...... 13,876 12,950 12,068 Preopening expenses.... 68 82 78 Operating income ........... 4,480 4,111 OTHER INCOME (EXPENSE) Interest expense......... (159) (133) Interest income and other, net ......... 121 62 INCOME BEFORE INCOME TAXES....... 4,442 4,039 3,619 Provision for income taxes 1,263 1.325 1,243 Net income including noncontrolling interests. 3,179 2,714 2,376 Net income attributable to noncontrolling interests... (45) (35) (26) NET INCOME ATTRIBUTABLE TO COSTCO ... $ 3,134 $ 2,679 5 2,350 NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic 7.15 $ 6.11 $ 5.36 Diluted ......... 7.09 $ 6.08 $ 5.33 Shares used in calculation (000's) Basic 438,515 438,437 438,585 Diluted ....... 441,834 440,937 441,263 CASH DIVIDENDS DECLARED PER COMMON SHARE ........ 2.14 $ 8.90 $ 1.70 80 The accompanying notes are an integral part of these consolidated financial statements.

Question 1: Basic Income Statement Information

Answer 1

	Most Recent Year	Next Most Recent Year	Second Most Recent Year	Explanation
a. Sales	141576	129025	118719	Sum of Net Sales and membership fees. Membership income is a primary source of income for membership clubs
b. COGS	123152	111882	102901	Costs directly attributable to sales - in this case the merchandise costs
c. Gross Margin, Profit or income	18424	17143	15818	Computed figure = a-b
d. Total Other Revenues, expenses, Gains or Losses (other than CGS)	13982	13104	12199	Selling + Preopening expenses + Interest expense - Interest income
e. Income / (Loss) before taxes	4442	4039	3619	Computed figure = c-d
f. Income Taxes	1263	1325	1243	Equals provision for income Taxes
g. Net Income (Loss)	3179	2714	2376	Computed figure = e-f
h. Comprehensive income	NA	NA	NA	The details for computing comprehensive income is not provided.