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Costco Wholesale Corporation Annual Report 2010: Analyze

Please assist me to answer the following by visiting Costco Wholesale Corporation website for Annual Report 2010:

Costco's Annual Report 2010 Balance Sheet - Question 12

Identify the three major balance sheet accounts, for example accounts receivable, accounts payable, inventory, etc. that changed the most from the prior year. What events might explain these changes? Working to explain why these changes occurred contributes to a greater understanding about a company. Example: Accounts Receivable - An increase in accounts receivable should coincide with an increase in sales, i.e., a 10% increase in sales would explain a 10% increase in accounts receivable. If accounts receivable are increasing and sales decreasing, the signal is unfavorable.

Balance Sheet - Question 14

Identify the three balance sheet groups from question 13 above that changed most significantly. Within each of these groups, identify the primary balance sheet element that drove this change. What events might explain these changes?
(Example, Current Assets sales increased by 22%, thus accounts receivable increased by approximately 22%)

Identify the three major elements, such as depreciation or other post employment benefits, that gave rise to deferred tax assets or deferred tax liabilities:

Deferred Tax Assets Deferred Tax Liabilities

Notes to the Financial Statements - Question 3

Does Costco report any investments in marketable securities? Identify the respective amount(s) invested.
Category (2010) Current Year Amount
Trading Securities
Available-for-Sale Securities
Held-to-Maturity Debt Securities

Notes to the Financial Statements - Question 4

What was Costco's income tax expense for the 2010?
How much cash was paid for income taxes in 2010? (Hint: Review the SCF. The difference generally relates to the accrual basis of accounting.)

Identify the three major elements, such as depreciation or other post employment benefits, that gave rise to deferred tax assets or deferred tax liabilities:

Deferred Tax Assets Deferred Tax Liabilities

What is this year's effective tax rate for Costco? Effective tax rate: %
What is the current year statutory rate? Statutory Tax Rate: %

Notes to the Financial Statements - Question 8

Review your Costco's lease note (and related balance sheet information), then identify the following amounts:
Minimum lease payments under operating leases
Minimum lease payments under capital leases
Ratio of operating lease payments to capital lease payments

As a user of reported financial information, would you be concerned about a significant amount of operating leases that are not reported in the balance sheet? Explain.

Solution Summary

Your tutorial is attached.

I have made pictures of the footnotes you need to use and given you the page numbers where I obtained the needed amounts. The annual report and the comments are attached.

$2.19