Forecast the Income Statement, Balance Sheet, and Statement of Cash Flows Following are fiscal year financial statements

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Forecast the Income Statement, Balance Sheet, and Statement ofCash Flows Following are fiscal year financial statements ofCostco. COSTCO WHOLESALE CORP Consolidated Statements of Income ForYear Ended ($ millions) Sep. 1, 2019 Sep. 2, 2018 Net sales$298,702 $276,868 Membership fees 6,704 6,284 Total revenue 305,406283,152 Merchandise costs 265,772 246,304 Selling, general andadministrative 29,988 27,752 Preopening expenses 172 136 Operatingincome 9,474 8,960 Interest expense (300) (318) Interest income andother, net 356 242 Income before income taxes 9,530 8,884 Provisionfor income taxes 2,122 2,526 Net income including noncontrollinginterests 7,408 6,358 Net income attributable to noncontrollinginterests (90) (90) Net income attributable to Costco $7,318 $6,268COSTCO WHOLESALE CORP Consolidated Balance Sheets In millions,except par value Sep. 1, 2019 Sep. 2, 2018 Current Assets Cash andcash equivalents $16,768 $12,110 Short-term investments 2,120 2,408Receivables, net 3,070 3,338 Merchandise inventories 22,790 22,080Other current assets 2,222 642 Total current assets 46,970 40,578Property and Equipment Land 12,834 12,386 Buildings andimprovements 34,272 32,214 Equipment and fixtures 15,602 14,548Construction in progress 2,544 2,280 Gross property and equipment65,252 61,428 Less accumulated depreciation and amortization(23,472) (22,066) Net property and equipment 41,780 39,362 Otherassets 2,050 1,720 Total assets $90,800 $81,660 Current LiabilitiesAccounts payable $23,358 $22,474 Accrued salaries and benefits6,352 5,988 Accrued member rewards 2,360 2,114 Deferred membershipfees 3,422 3,248 Current portion of long-term debt 3,398 180 Othercurrent liabilities 7,584 5,848 Total current liabilities 46,47439,852 Long-term debt, excluding current portion 10,248 12,974Other liabilities 2,910 2,628 Total liabilities 59,632 55,454Equity Preferred stock $.01 par value; 100,000,000 sharesauthorized* — — Common stock $0.01 par value; 900,000,000 sharesauthorized** 8 8 Additional paid-in capital 12,834 12,214Accumulated other comprehensive loss (2,872) (2,398) Retainedearnings 20,516 15,774 Total Costco stockholders' equity 30,48625,598 Noncontrolling interests 682 608 Total equity 31,168 26,206Total liabilities and equity $90,800 $81,660 *no shares issued andoutstanding ** 879,250,000 and 876,378,000 shares issued andoutstanding Required Forecast Costco’s income statement, balancesheet, and statement of cash flows for the year ended September 1,2020. Combine all property and equipment accounts into Net propertyand equipment. Forecasts assumptions Forecast Net sales andMembership fees using their respective historical growth rates(2018 to 2019). Forecast the following as a percentage of Netsales: • Merchandise costs • Receivables, net • Merchandiseinventories • Accounts payable • Accrued member rewards Forecastincome tax as 23% of pretax income Forecast Deferred membershipfees as a percentage of Membership fees. Assume no change in thebalance of the following: • Preopening expenses • Interest expense• Interest income • Net income attributable to noncontrollinginterest • Short-term investments • Preferred stock • Common stock• Accumulated other comprehensive loss Debt maturing in fiscal 2020and 2021 is $3,398 million and $2,188 million, respectively. Thecompany anticipates repurchasing $500 million in common stock infiscal 2020. The 2019 statement of cash flows reports thefollowing: • Depreciation expense of $2,984 million • Dividends of$2,076 million (to forecast 2020 dividends, use the 2019 dividendpayout ratio as a percentage of net income attributable to Costcoshareholders) • Stock-based compensation (a noncash expense that isincluded in SG&A expense and is added to Additional paid-incapital) of $1,190 million • CAPEX of $5,996 million Forecast allother items as a percentage of total revenues. Note: Roundhistorical rates used in calculations to three decimal places. Forexample, assume that Actual Merchandise inventories divided ActualNet sales equals 0.076297. This factor should be rounded to 7.6%before computing your forecasted amount for Merchandiseinventories. Note: Round your final answers below to the nearestwhole dollar. COSTCO WHOLESALE CORP Forecasted Income Statement Forthe year ended Sep. 01, 2020 $ millions Forecast Net sales AnswerMembership fees Answer Total revenues Answer Expenses Merchandisecost Answer Selling, general and administrative Answer Preopeningexpenses Answer Operating income Answer Interest expense AnswerInterest income and other, net Answer Income before income taxesAnswer Provision for income taxes Answer Net income includingnoncontrolling interests Answer Net income attributable tononcontrolling Answer Net income attributable to Costco AnswerCOSTCO WHOLESALE CORP Balance Sheet Sep. 01, 2020 $ millionsForecast Cash and cash equivalents Answer Short-term investmentsAnswer Receivables, net Answer Merchandise inventories Answer Othercurrent assets Answer Total current assets Answer Net property andequipment Answer Other assets Answer Total assets Answer Accountspayable Answer Accrued salaries and benefits Answer Accrued memberrewards Answer Deferred memberships fees Answer Current portion oflong-term debt Answer Other current liabilities Answer Totalcurrent liabilities Answer Long term debt, excluding currentportion Answer Other liabilities Answer Total liabilities AnswerPreferred stock Answer Common stock Answer Additional paid-incapital Answer Accumulated other comprehensive loss Answer Retainedearnings Answer Treasury stock Answer Total Costco stockholders'equity Answer Noncontrolling interests Answer Total equity AnswerTotal liabilities and equity Answer COSTCO WHOLESALE CORPForecasted Statement of Cash Flow For the year ended Sep. 01, 2020$ millions Forecast Net income including noncontrolling interestsAnswer Add: Depreciation Answer Add: Stock-based compensationAnswer Receivables, net Answer Merchandise inventories Answer Othercurrent assets Answer Other assets Answer Accounts payable AnswerAccrued salaries and benefits Answer Accrued member rewards AnswerDeferred membership fees Answer Other current liabilities AnswerOther liabilities Answer Net cash from operating activities AnswerCapital Expenditures Answer Net cash from investing activitiesAnswer Dividends Answer Change in current maturities of L-T debtAnswer Change in L-T Debt Answer Stock repurchases Answer Net cashfrom financing activities Answer Net change in cash AnswerBeginning cash Answer Ending cash Answer
COSTCO WHOLESALE CORP
Balance Sheet
$ millions Sep. 01, 2020
Forecast
COSTCO WHOLESALE CORP
Forecasted Statement of Cash Flow
For the year ended
$ millions Sep. 01, 2020
Forecast