Analysis and Interpretation of Liquidity and Solvency
Balance sheets and income statements for Costco Wholesale Corporation follow.

(a) Compute Costco's financial leverage (FLEV), Spread, and noncontrolling interest (NCI) ratio for 2016; recall, NNE = NOPAT-Net income.

Remember to use negative signs with answers, when appropriate.  

2016 NNO =$Answer

million
2015 NNO =$Answer million  

2016 NNE =$Answer

million
2016 NNEP =Answer% Round NNEP to two decimal places.   

2016 FLEV        = Answer  Round FLEV to four decimal places.   
2016 Spread    = Answer% Round Spread to two decimal places.
2016 NCI ratio = Answer Round NCI ratio to four decimal places.

(b) Assume that Costco's return on equity (ROE) for 2016 is 20.71% and its return on net operating assets (RNOA) is 20.66%. Confirm computations to yield the relation: ROE = [RNOA + (FLEV X Spread)] X NCI ratio.

2016 ROE =Answer

% = [Answer%+(Answer X Answer%)] X Answer


(c) What do your computations of the nonoperating return in parts (a) and (b) imply about the company's use of borrowed funds?

Costco's FLEV is negative - meaning its non-operating assets exceed its non-operating liabilities. Costco has a high level of short term investments to use for new opportunities.

Costco's FLEV is negative - meaning its non-operating liabilities exceed its non operating assets. Costco will need to rely on debt to finance new opportunities.

Costco's FLEV is positive - meaning its non-operating assets exceed its non-operating liabilities. Costco has a high level of cash and short term investments to use for new opportunities.

Costco's FLEV is positive - meaning its non-operating liabilities exceed its non-operating assets. Costco has a high level of cash and short term investments to use for new opportunties.

Serial Problem Business Solutions LO P1, P2, P3, P4, P5

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2016, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2016) follows.

No. Account Title Debit Credit
101 Cash $ 38,764
106 Accounts receivable 12,918
126 Computer supplies 2,645
128 Prepaid insurance 2,160
131 Prepaid rent 3,280
163 Office equipment 8,300
164 Accumulated depreciation—Office equipment $ 0
167 Computer equipment 22,400
168 Accumulated depreciation—Computer equipment 0
201 Accounts payable 0
210 Wages payable 0
236 Unearned computer services revenue 0
307 Common stock 66,000
318 Retained earnings 0
319 Dividends 5,700
403 Computer services revenue 35,779
612 Depreciation expense—Office equipment 0
613 Depreciation expense—Computer equipment 0
623 Wages expense 2,325
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 1,708
676 Mileage expense 654
677 Miscellaneous expenses 220
684 Repairs expense—Computer 705
Totals $ 101,779 $ 101,779

Business Solutions had the following transactions and events in December 2016.

Dec. 2 Paid $950 cash to Hillside Mall for Business Solutions’s share of mall advertising costs.
3 Paid $440 cash for minor repairs to the company’s computer.
4 Received $4,550 cash from Alex’s Engineering Co. for the receivable from November.
10 Paid cash to Lyn Addie for six days of work at the rate of $105 per day.
14 Notified by Alex’s Engineering Co. that Business Solutions’s bid of $7,100 on a proposed project has been accepted. Alex’s paid a $2,500 cash advance to Business Solutions.
15 Purchased $1,400 of computer supplies on credit from Harris Office Products.
16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
20 Completed a project for Liu Corporation and received $6,525 cash.
22–26 Took the week off for the holidays.
28 Received $3,400 cash from Gomez Co. on its receivable.
29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile).
31 The company paid $1,300 cash in dividends.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:

The December 31 inventory count of computer supplies shows $590 still available.
Three months have expired since the 12-month insurance premium was paid in advance.
As of December 31, Lyn Addie has not been paid for four days of work at $105 per day.
The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
Three of the four months' prepaid rent has expired.

Required:

1. Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.1 Prepare adjusting entries to reflect a through f.

a) The december 31 inventory count of computer supplies shows $590 still available.

2.2 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.

General Ledger Accounts

3. Prepare an adjusted trial balance as of December 31, 2016.

4. Prepare an income statement for the three months ended December 31, 2016.

5. Prepare a statement of retained earnings equity for the three months ended December 31, 2016.

6. Prepare a balance sheet as of December 31, 2016.

7. Record and post the necessary closing entries for Business Solutions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

a) Record the entry to close the revenue account.
b)Record the entry to close the expense accounts.
c)Record the entry to close the income summary account.
d)Record the entry to close the dividends accounts.
8. Prepare a post-closing trial balance as of December 31, 2016.
9) Prepare the required unadjusted trial balance dated December 31, 2016
Business Solutions Unadjusted Trial Balance December 31, 2016

10) Analyze your results
For Business Solutions calculate and define the following four ratios for 12/31/2016.
Use the amounts from the financial statements
a. Return on assets (for beginning total assets use total assets use the initial investment to Common Stock for the start-up period only)
b. Debt ratio c. Profit margin ratio (Use Computer Services Revenue as Net Sales) d. Current ratio

Your body can defend you from any antigen that enters your body as long as that antigen is a foreign antigen.

How can your body generate such a diverse variety of antibodies? (2) Hint V and J chains

Find the dimensions (in inches) of the rectangular package of maximum volume subject to the constraint that the sum of the length and the girth cannot exceed 192 inches (see figure). (Hint: Maximize V = xyz subject to the constraint x + 2y + 2z = 192.)

1. Which group (or groups) of viruses must package an RNA-dependent RNA Polymerase in the capsid of the virus along with the genome?

   		Group I
   		Group II
   		Group III
   		Group IV
   		Group V
   		Group VI
   		Group VII

Find the angle θ between the vectors in radians and in degrees.

u = cos

i + sin

j, v = cos

i + sin

j

(a) radians

(b) degrees

The current through two identical light bulbs connected in series is 0.25 A. The total voltage across both

bulbs is 120 V. The resistance of a single light bulb is

a. 48 ohms.

b. 240 ohms.

c. 480 ohms.

Determine which of the following is:

a) the most concentrated, and

b) the most dilute.

(i) 0.45 mol L-1 NaCl

(ii) 4.2 % m/v NaCl

(iii) 41.6g NaCl L-1

(iv) 39950 ppm NaCl