Costco Wholesale Corporation operated 715 stores as of August 28, 2016. The following data were taken...
Costco Wholesale Corporation operated 715 stores as of August 28, 2016. The following data were taken from the company’s annual report. All dollar amounts are in millions.
|
Fiscal Years Ending |
||
|
August 28, 2016 |
August 30, 2015 |
|
|
Net sales |
$116,073 |
$113,666 |
|
Cost of goods sold |
102,901 |
101,065 |
|
Net income |
2,350 |
2,377 |
|
Merchandise inventory |
8,969 |
8,908 |
Page 312Required
- Compute Costco’s inventory turnover ratio for 2016 and 2015.
- Compute Costco’s average days to sell inventory for 2016 and 2015.
- Based on your computations in Requirements a and b, did Costco’s inventory management get better or worse from 2015 to 2016?
Homework Answers
|
Inventory Turnover = Cost of Goods Sold /Average inventory 2016 = 102,901 / [(8969+8908)/2] = 11.51 times 2015 = 101,065/8908 = 11.35 times |
|
|
Average days to sell = 365/ Inventory Turnover 2016 = 365/11.51 = 31.7 days 2015 = 365/11.35 = 32.12 days |
|
| Inventory management got better because inventory Turnover increased |
NOTE : I've rounded some numbers. Comment if you face any issues
Add Answer to:
Costco Wholesale Corporation operated 715
stores as of August 28, 2016. The following data were taken...
Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of...
Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) August 28, 2016 August 30, 2015 August 31, 2014 Revenue Net Sales $116,073 $113,666 $110,212 Membership fees 2,646 2,533 2,428 Total revenue 118,719 116,199 112,640 Operating expenses Merchandise costs 102,901 101,065 98,458 Selling, general and administrative 12,068 11,445 10,899 Preopening expenses 78 65 63 Operating Income 3,672 3,624 3,220 Other income (expense) Interest expense (133) (124) (113)...
Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco...
Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) August 28, 2016 August 30, 2015 August 31, 2014 Revenue Net Sales $116,073 $113,666 $110,212 Membership fees 2,646 2,533 2,428 Total revenue 118,719 116,199 112,640 Operating expenses Merchandise costs 102,901 101,065 98,458 Selling, general and administrative 12,068 11,445 10,899 Preopening expenses 63 Operating Income 3,672 3,624 3,220 Other income (expense) Interest expense...
Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco...
Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) August 28, 2016 August 30, 2015 August 31, 2014 Revenue Net Sales $116,073 $113,666 $110,212 Membership fees 2,646 2,533 2,428 Total revenue 118,719 116,199 112,640 Operating expenses Merchandise costs 102,901 101,065 98,458 Selling, general and administrative 12,068 11,445 10,899 Preopening expenses 63 Operating Income 3,672 3,624 3,220 Other income (expense) Interest expense...
Costco Wholesale Corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods...
Costco Wholesale Corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 721locations across the U.S. as well as in Canada, the United Kingdom, Japan, Australia, South Korea, Taiwan, Mexico and Puerto Rico. As of its fiscal year-end 2016, Costco had approximately 86.7 million members. Selected fiscal-year information from the company's balance sheets follows. Selected Balance Sheet Data ($ millions) 2016 2015 Merchandise inventories $8,969 $8,908 Deferred membership income (liability) 1,362 1,269 (a) During fiscal...
Inferring Transactions from Financial Statements Costco Wholesale Corporation operates membership warehouses selling food, appliances, consumer electronics,...
Inferring Transactions from Financial Statements Costco Wholesale Corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 721locations across the U.S. as well as in Canada, the United Kingdom, Japan, Australia, South Korea, Taiwan, Mexico and Puerto Rico. As of its fiscal year-end 2016, Costco had approximately 86.7 million members. Selected fiscal-year information from the company's balance sheets follows Selected Balance Sheet Data ($ millions) Merchandise inventories Deferred membership income (liability) 2016 $8,969 $8,908 1,362...
this is a clearer picture .. thanks Direct Computation of Nonoperating Return Balance sheets and income...
this is a clearer picture .. thanks
Direct Computation of Nonoperating Return Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ 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 65 63 Operating Income...
Find ratio analysis for liquidity and efficiency COSTCO WHOLESALE CORPORATION CONSOLIDATED BALANCE SHEETS (amounts in millions,...
Find ratio analysis for liquidity and efficiency COSTCO WHOLESALE CORPORATION CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) September 3, 2017 August 28, 2016 $ 4,546 1,233 1,432 9,834 1,350 1,252 8,969 ASSETS CURRENT ASSETS Cash and cash equivalents ........... Short-term investments ............. Receivables, net ............ Merchandise inventories ...... Other current assets... Total current assets PROPERTY AND EQUIPMENT Land .. Buildings and improvements... Equipment and fixtures Construction in progress... 272 268 17,317 15.218 5,690 15,127 6,681...
P3-50. Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow...
P3-50. Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow Aug. 30. 2015 Aug. 31, 2014 $113.666 2.533 116.199 $110.212 2.428 112.540 COSTCO WHOLESALE CORPORATION Consolidated Statements of income Aug. 20 For Fiscal Years Ended (5 millions) 2016 Revenue Net sales. $116.073 Membership fees. Total revenue. 118,719 Operating expenses Merchandise costs... 102 901 Selling, general and administrative...... 12.058 Preopening expenses............ Operating income.. 3.672 Other Income (expense) Interest expense..... . (1339 Interest Income and other...
Question 1: Basic Income Statement Information COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF INCOME (amounts in millions,...
Question 1: Basic Income Statement Information
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...
What was the EV/EBITDA multiple Amazon actual paid to acquire Whole Foods using EBITDA at 9/25/2016? Use...
What was the
EV/EBITDA multiple Amazon actual paid to acquire Whole Foods using
EBITDA at 9/25/2016? Use the data from Exhibit 1 for a
top down EBITDA calculation (Starting from EBIT not Net Income),
Depreciation & Amortization in fiscal 2016 of $498 million, and
Amazon purchase price of $13.7 bln as the EV which includes Whole
Foods debt (p.10 of the case).
A. 3.2x
B. 6.9x
C. 10.0x
D. 20.0x
Please answer as soon as you reasonably can
(in $ millions...
Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) August 28, 2016 August 30, 2015 August 31, 2014 Revenue Net Sales $116,073 $113,666 $110,212 Membership fees 2,646 2,533 2,428 Total revenue 118,719 116,199 112,640 Operating expenses Merchandise costs 102,901 101,065 98,458 Selling, general and administrative 12,068 11,445 10,899 Preopening expenses 63 Operating Income 3,672 3,624 3,220 Other income (expense) Interest expense...
Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) August 28, 2016 August 30, 2015 August 31, 2014 Revenue Net Sales $116,073 $113,666 $110,212 Membership fees 2,646 2,533 2,428 Total revenue 118,719 116,199 112,640 Operating expenses Merchandise costs 102,901 101,065 98,458 Selling, general and administrative 12,068 11,445 10,899 Preopening expenses 63 Operating Income 3,672 3,624 3,220 Other income (expense) Interest expense...
Inferring Transactions from Financial Statements Costco Wholesale Corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 721locations across the U.S. as well as in Canada, the United Kingdom, Japan, Australia, South Korea, Taiwan, Mexico and Puerto Rico. As of its fiscal year-end 2016, Costco had approximately 86.7 million members. Selected fiscal-year information from the company's balance sheets follows Selected Balance Sheet Data ($ millions) Merchandise inventories Deferred membership income (liability) 2016 $8,969 $8,908 1,362...
this is a clearer picture .. thanks
Direct Computation of Nonoperating Return Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ 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 65 63 Operating Income...
Find ratio analysis for liquidity and efficiency COSTCO WHOLESALE CORPORATION CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) September 3, 2017 August 28, 2016 $ 4,546 1,233 1,432 9,834 1,350 1,252 8,969 ASSETS CURRENT ASSETS Cash and cash equivalents ........... Short-term investments ............. Receivables, net ............ Merchandise inventories ...... Other current assets... Total current assets PROPERTY AND EQUIPMENT Land .. Buildings and improvements... Equipment and fixtures Construction in progress... 272 268 17,317 15.218 5,690 15,127 6,681...
P3-50. Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow Aug. 30. 2015 Aug. 31, 2014 $113.666 2.533 116.199 $110.212 2.428 112.540 COSTCO WHOLESALE CORPORATION Consolidated Statements of income Aug. 20 For Fiscal Years Ended (5 millions) 2016 Revenue Net sales. $116.073 Membership fees. Total revenue. 118,719 Operating expenses Merchandise costs... 102 901 Selling, general and administrative...... 12.058 Preopening expenses............ Operating income.. 3.672 Other Income (expense) Interest expense..... . (1339 Interest Income and other...
Question 1: Basic Income Statement Information
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...
What was the
EV/EBITDA multiple Amazon actual paid to acquire Whole Foods using
EBITDA at 9/25/2016? Use the data from Exhibit 1 for a
top down EBITDA calculation (Starting from EBIT not Net Income),
Depreciation & Amortization in fiscal 2016 of $498 million, and
Amazon purchase price of $13.7 bln as the EV which includes Whole
Foods debt (p.10 of the case).
A. 3.2x
B. 6.9x
C. 10.0x
D. 20.0x
Please answer as soon as you reasonably can
(in $ millions...
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