Financial Statement Analysis

  o develop a detailed Financial Statement Analysis for Costco Wholesale in 2001. You should include information from your Week 3 homework assignment and the class discussion in Week 4. Discuss the following items: 1) What is Costco’s primary market? Who are its competitors, and what is its strategy? 2) How have Costco’s revenues, operating income, and net income changed from 1997 to 2001? Why was Costco not more profitable in 2001? Refer to Exhibit 5. 3) Select 2 profitability and 2 liquidity/solvency ratios. Analyze them in detail and explain how Costco could improve these measures in the next 5 years (after 2001). 4) Based on your analysis, provide a forecast for the company’s financial performance in the coming five years after 2001 (in broad terms). Focus on the company’s future profitability and potential future financial risks. Also, discuss how Corporate Social Responsibility (CSR) initiatives may help Costco to achieve its long-term financial goals. 5) In your Week 3 homework assignments, you briefly discussed Costco’s strengths and weaknesses. Which areas would Costco need to improve for you to consider investing in this company?