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oasts whole coffee beans and sells them, along with a variety of freshly brewed coffees and other beverages, food items, and coffee-related merchandise, in its retail shops. It also produces and sells bottled coffee drinks, a line of premium ice creams, and most recently, instant coffee products. Starbucks is one of the most recognized and respected brands in the world. Required: Evaluate the company’s performance in terms of Adequacy of cash flows.

oasts whole coffee beans and sells them, along with a variety of freshly brewed coffees and other beverages, food items, and coffee-related merchandise, in its retail shops. It also produces and sells bottled coffee drinks, a line of premium ice creams, and most recently, instant coffee products. Starbucks is one of the most recognized and respected brands in the world. Required: Evaluate the company’s performance in terms of Adequacy of cash flows.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Starbucks is today the world’s leading roaster and retailer of specialty coffee. The company purchases and roasts whole coffee beans and sells them, along with a variety of freshly brewed coffees and other beverages, food items, and coffee-related merchandise, in its retail shops. It also produces and sells bottled coffee drinks, a line of premium ice creams, and most recently, instant coffee products. Starbucks is one of the most recognized and respected brands in the world.

 

Required:

Evaluate the company’s performance in terms of Adequacy of cash flows.

2016 0.8 times 0.3 times 33.6 times 10.9 days 6.7 times 54.5 days 13.0 times 28.1 ooys 3.0% 1.9times 5.7% 13.2% 1.3times 9.6times 4.0times 12.1% 2015 0.8times 0.3 times 36.7 times 9.9 days 6.0 times 60.8 days 11.1 times 32.9 days 7.1% 1.9 times Related Ratios: Curentratio Quick ratio Receivable turnover Day'ssales uncolected Inventory tumover Day'sinventory on hand Payablesturnover Day'spayable Profit margin Asset turnover Return on assets Return on equity Debtto equity Interest coverage ratio Cash flow yield Cash flow to sales Cash flow to assets Free cash flow Price Earnings ratio 13.8% 29.8% 1.3times 28.8times 2.0 times 14.1% 27.2% $250.9 30.1 times చర చెలె $274.2 35.5times Required:
Transcribed Image Text:2016 0.8 times 0.3 times 33.6 times 10.9 days 6.7 times 54.5 days 13.0 times 28.1 ooys 3.0% 1.9times 5.7% 13.2% 1.3times 9.6times 4.0times 12.1% 2015 0.8times 0.3 times 36.7 times 9.9 days 6.0 times 60.8 days 11.1 times 32.9 days 7.1% 1.9 times Related Ratios: Curentratio Quick ratio Receivable turnover Day'ssales uncolected Inventory tumover Day'sinventory on hand Payablesturnover Day'spayable Profit margin Asset turnover Return on assets Return on equity Debtto equity Interest coverage ratio Cash flow yield Cash flow to sales Cash flow to assets Free cash flow Price Earnings ratio 13.8% 29.8% 1.3times 28.8times 2.0 times 14.1% 27.2% $250.9 30.1 times చర చెలె $274.2 35.5times Required:
Starbucks Corporation Consolidated Income Statements For the Years Ended September 28,2016, and September 30,2015 (Dollar amounts in millions except per share amounts) Increase (Decrease) Amount Percentage 2016 2015 Netrevenues $10.383.00 $9.411.50 $971.50 $10.30 Cost of sales, including occupancy costs 4.645.3 Gross morgin Operating expenses Store operating expenses Other operating expenses Depreciation and amortization expenses General andadministrative expense Restructuring charges Total operating expenses Operatingincome Otherincome. net interest expense Income before taxes Provision for income taxes Income before cumulative change, net of taxes Cumulative effect of accounting change, net of taxes Net income 3999.1 $5412.4 646.2 325.3 16.2 $5.737.30 $3745.1 $3.215.90 330.1 529.2 35.9 16.5 12.2 294.2 549.3 456 266.9 5347.4 $390.3 122.6 -53.4 $459.5 467.2 489.2 82.1 -33.2 266.9 880.9 555.6 -25.8 -15.4 -596.8 -239.7 17.6 -6.8 100 19.7 -58.7 -17.4 40.5 4466.5 $945.90 148.4 +38 ST056 3 383.7 -56.5 44 -62.5 $315.5 $672.6 -357.1 -53.1 $315.5 $672.6 -357.1 -53.1 Percommon share:
Transcribed Image Text:Starbucks Corporation Consolidated Income Statements For the Years Ended September 28,2016, and September 30,2015 (Dollar amounts in millions except per share amounts) Increase (Decrease) Amount Percentage 2016 2015 Netrevenues $10.383.00 $9.411.50 $971.50 $10.30 Cost of sales, including occupancy costs 4.645.3 Gross morgin Operating expenses Store operating expenses Other operating expenses Depreciation and amortization expenses General andadministrative expense Restructuring charges Total operating expenses Operatingincome Otherincome. net interest expense Income before taxes Provision for income taxes Income before cumulative change, net of taxes Cumulative effect of accounting change, net of taxes Net income 3999.1 $5412.4 646.2 325.3 16.2 $5.737.30 $3745.1 $3.215.90 330.1 529.2 35.9 16.5 12.2 294.2 549.3 456 266.9 5347.4 $390.3 122.6 -53.4 $459.5 467.2 489.2 82.1 -33.2 266.9 880.9 555.6 -25.8 -15.4 -596.8 -239.7 17.6 -6.8 100 19.7 -58.7 -17.4 40.5 4466.5 $945.90 148.4 +38 ST056 3 383.7 -56.5 44 -62.5 $315.5 $672.6 -357.1 -53.1 $315.5 $672.6 -357.1 -53.1 Percommon share:
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