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Write three page analyses on both the Income Statement and the Balance Sheet for Costco Corporation; focus on the points below for each section. Include graph and charts if necessary. Attached are Costco's financial statements. Please use the following cite as your main source along with any other necessary cites.

Costco Wholesale Corporation (2015). Form 10-K 2015. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml

The Income Statement:

With this, we will focus in on Costco's 6 main profit points:

1) Gross profit - Will show us Costco's sales - cost of goods sold.

2) EBITDA - Will further deduct their operating expenses.

3) Net Operating Income - Removes depreciation and amortization.

4) EBIT - Removes other income/expenses.

5) EBT - Deducts interest expense

6) a. Income Calc. from Continuing Operations - deducts continuing operations

b. Net Income - further deducts other expenses.

The Balance Sheet:

1) Dividends - Does Costco payout dividends, how does it affect them?

2) Cash flow from investing/financing and operating activities - Do they have sufficient cash flow for operations or are they barely getting by?

3) Debt issuance/liabilities and equity. Is Costco issuing new debt or are they liquid?

4) Forecasting - Is Costco in a strong financial position with equity and assets?

5) Stock/stockholder's equity - How much outstanding stock, is Costco heavily obligated to shareholders??

Attachment:- costcos-financial-statements.rar

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91783757

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