Suppose the years 2005 to 2009 were a period of rapid growth for a certain chain of coffeehouses and the company's revenues grew by more than 50% during that period. Use the hypothetical financial data for the company to answer the questions. Selected Financial Data (In millions, except earnings per share) As of and for the fiscal year ended Sept. 27, 2009 (52 wks) Sept. 28, 2008 (52 wks) Sept. 30, 2007 (52 wks) Oct. 1, 2006 (52 wks) Oct. 2, 2005 (52 wks) Results of Operations Net revenues: Company-operated retail $8,090.1 $8,671.9 $7,918.3 $6,453.1 $5,301.9 Specialty: Licensing 1,222.3 1,171.6 1,026.3 860.6 673.0 Food service and other 372.2 439.5 386.9 343.2 304.4 Total specialty 1,594.5 1,611.1 1,413.2 1,203.8 977.4 Total net revenues $9,684.6 $10,283.0 $9,331.5 $7,656.9 $6,279.3 Operating income $562.0 $503.9 $1,053.9 $894.0 $780.5 Earnings before cumulative effect of change in accounting principle 510.8 415.5 772.6 691.5 624.4 Cumulative effect of accounting change for asset retirement obligations, net of taxes — — — 17.2 — Net earnings $510.8 $415.5 $772.6 $674.3 $624.4 Earnings per common share before cumulative effect of change in accounting principle—diluted ("EPS") $0.52 $0.43 $0.87 $0.73 $0.61 Cumulative effect of accounting change for asset retirement obligations, net of taxes—per common share — — — 0.02 — EPS—diluted $0.52 $0.43 $0.87 $0.71 $0.61 Net cash provided by operating activities $1,389.0 $1,258.7 $1,331.2 $1,131.6 $922.9 Capital expenditures (additions to property, plant and equipment) $445.6 $984.5 $1,080.3 $771.2 $643.3 Balance Sheet Total assets $5,676.8 $5,742.6 $5,443.9 $4,498.9 $3,603.7 Short-term borrowings — 713.0 710.3 700.0 277.0 Long-term debt (including current portion) 549.5 550.3 550.9 2.7 3.6 Shareholders' equity $2,935.7 $2,390.9 $2,154.1 $2,118.5 $2,020.3 (a) Calculate the asset turnover ratio for 2008 and 2009. (Round your answers to two decimal places.) 20082009 (b) Calculate the net profit margin (as a %) for 2007, 2008, and 2009. (Round your answers to the nearest tenth of a percent.) 2007 %2008 %2009 % (c) Calculate the return on investment (as a %) for 2007, 2008, and 2009. (Round your answers to the nearest tenth of a percent.) 2007 %2008 %2009 %

Suppose the years 2005 to 2009 were a period of rapid growth for a certain chain of coffeehouses and the company's revenues grew by more than 50% during that period. Use the hypothetical financial data for the company to answer the questions. Selected Financial Data (In millions, except earnings per share) As of and for the fiscal year ended Sept. 27, 2009 (52 wks) Sept. 28, 2008 (52 wks) Sept. 30, 2007 (52 wks) Oct. 1, 2006 (52 wks) Oct. 2, 2005 (52 wks) Results of Operations Net revenues: Company-operated retail $8,090.1 $8,671.9 $7,918.3 $6,453.1 $5,301.9 Specialty: Licensing 1,222.3 1,171.6 1,026.3 860.6 673.0 Food service and other 372.2 439.5 386.9 343.2 304.4 Total specialty 1,594.5 1,611.1 1,413.2 1,203.8 977.4 Total net revenues $9,684.6 $10,283.0 $9,331.5 $7,656.9 $6,279.3 Operating income $562.0 $503.9 $1,053.9 $894.0 $780.5 Earnings before cumulative effect of change in accounting principle 510.8 415.5 772.6 691.5 624.4 Cumulative effect of accounting change for asset retirement obligations, net of taxes — — — 17.2 — Net earnings $510.8 $415.5 $772.6 $674.3 $624.4 Earnings per common share before cumulative effect of change in accounting principle—diluted ("EPS") $0.52 $0.43 $0.87 $0.73 $0.61 Cumulative effect of accounting change for asset retirement obligations, net of taxes—per common share — — — 0.02 — EPS—diluted $0.52 $0.43 $0.87 $0.71 $0.61 Net cash provided by operating activities $1,389.0 $1,258.7 $1,331.2 $1,131.6 $922.9 Capital expenditures (additions to property, plant and equipment) $445.6 $984.5 $1,080.3 $771.2 $643.3 Balance Sheet Total assets $5,676.8 $5,742.6 $5,443.9 $4,498.9 $3,603.7 Short-term borrowings — 713.0 710.3 700.0 277.0 Long-term debt (including current portion) 549.5 550.3 550.9 2.7 3.6 Shareholders' equity $2,935.7 $2,390.9 $2,154.1 $2,118.5 $2,020.3 (a) Calculate the asset turnover ratio for 2008 and 2009. (Round your answers to two decimal places.) 20082009 (b) Calculate the net profit margin (as a %) for 2007, 2008, and 2009. (Round your answers to the nearest tenth of a percent.) 2007 %2008 %2009 % (c) Calculate the return on investment (as a %) for 2007, 2008, and 2009. (Round your answers to the nearest tenth of a percent.) 2007 %2008 %2009 %

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Selected Financial Data (In millions, except earnings per share)

As of and for the fiscal year ended	Sept. 27, 2009 (52 wks)	Sept. 28, 2008 (52 wks)	Sept. 30, 2007 (52 wks)	Oct. 1, 2006 (52 wks)	Oct. 2, 2005 (52 wks)
Results of Operations
Net revenues:
Company-operated retail	$8,090.1	$8,671.9	$7,918.3	$6,453.1	$5,301.9
Specialty:
Licensing	1,222.3	1,171.6	1,026.3	860.6	673.0
Food service and other	372.2	439.5	386.9	343.2	304.4
Total specialty	1,594.5	1,611.1	1,413.2	1,203.8	977.4
Total net revenues	$9,684.6	$10,283.0	$9,331.5	$7,656.9	$6,279.3
Operating income	$562.0	$503.9	$1,053.9	$894.0	$780.5
Earnings before cumulative effect of change in accounting principle	510.8	415.5	772.6	691.5	624.4
Cumulative effect of accounting change for asset retirement obligations, net of taxes	—	—	—	17.2	—
Net earnings	$510.8	$415.5	$772.6	$674.3	$624.4
Earnings per common share before cumulative effect of change in accounting principle—diluted ("EPS")	$0.52	$0.43	$0.87	$0.73	$0.61
Cumulative effect of accounting change for asset retirement obligations, net of taxes—per common share	—	—	—	0.02	—
EPS—diluted	$0.52	$0.43	$0.87	$0.71	$0.61
Net cash provided by operating activities	$1,389.0	$1,258.7	$1,331.2	$1,131.6	$922.9
Capital expenditures (additions to property, plant and equipment)	$445.6	$984.5	$1,080.3	$771.2	$643.3
Balance Sheet
Total assets	$5,676.8	$5,742.6	$5,443.9	$4,498.9	$3,603.7
Short-term borrowings	—	713.0	710.3	700.0	277.0
Long-term debt (including current portion)	549.5	550.3	550.9	2.7	3.6
Shareholders' equity	$2,935.7	$2,390.9	$2,154.1	$2,118.5	$2,020.3

(a)

Calculate the asset turnover ratio for 2008 and 2009. (Round your answers to two decimal places.)

20082009

(b)

Calculate the net profit margin (as a %) for 2007, 2008, and 2009. (Round your answers to the nearest tenth of a percent.)

2007 %2008 %2009 %

(c)

Calculate the return on investment (as a %) for 2007, 2008, and 2009. (Round your answers to the nearest tenth of a percent.)

2007 %2008 %2009 %

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