Annual Report Analysis – Costco Wholesale

Annual Report Analysis – Costco Wholesale Corp.

Andy Mehta

DeVry University Online

December 9, 2012

Table of Contents

Introduction 3

Income Statement 5

Cash Flow Statement 7

Reference 13

Introduction: A company's annual report shows the past and present state of the company and an Annual Report Analysis provides an overview of the previous year of operations and how the company fared in that time period. It will also give an overview on the upcoming year, outlining future goals and approaches to new projects.

This analysis will help investors and shareholders to have a clear view in to the company’s finance. We will take a look at the Financial statement of Costco Wholesale Corp, find out who is the firm’s auditors, have a Business Overview, learn the trend in total assets and total liabilities, get to know company’s three largest assets and company’s three largest liabilities, find out the company stocks potions and trend in net income and to find out is there is any comprehensive income. We will also find out the method of the cash flow statement and the trend in cash from operations and also the largest items investing activities for Costco Wholesale Corp.

1. Who are the firm’s auditors? Do they provide a clean opinion on the financial statements?

Costco Wholesale Corp. has an audit committee as its auditors. It is a small group of people who do the auditing job. Primarily, Charles Munger, Daniel Evans and Susan Decker are on the audit committee. The audit committee does provide a clean opinion on the financial statement. As the annual financial report provided as above, we can see that the audit committee did a good job list out each of the statement of financial position which include three part: assets, liabilities and ownership equity. The annual financial report also well includes each subject under different accounts.

2. Have there been any subsequent events, errors and irregularities, illegal acts, or related-party transactions that...