The following data (in thousands) were taken from recent financial statements of Starbucks Corporation: Year 2 Year 1 $86,237 $63,032 26,453 19,575 a. Compute the working capital and the current ratio for Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratio" answers to two decimal places. Year 2 Current assets Current liabilities Working capital Current ratio Year 1 b. What conclusions concerning the company's ability to meet its financial obligations can you draw from part (a)? Starbucks' working capital from Year 1 to Year 2 by $ Starbucks's current ratio changes in working capital and current ratio indicate that short-term creditors in Year 2. The concerned about receiving payment from Starbucks.

3. Measuring Performance. Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales 881 Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) 741 31 109 Interest expense 12 Income before tax 97 Taxes 34 Net income 63 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets 369 312 Long-term assets 258 222 Total assets 627 534 Liabilities and shareholders' equity Current liabilities 194 157 121 Long-term debt Shareholders' equity Total liabilities and shareholders' equity 108 325 256 627 534 The company's cost of capital is 8.5%. (LO4-2) a. Calculate Watervan's economic value added (EVA). D. What is the company's return on capital? (Use start-of-year rather than average capital.) C. What is its return on equity? (Use start-of-year rather than average equity.)

Income statements illustrate what revenues the firm collects, the expenses required to support revenues, and the firm's profitability over a specified period of time. While balance sheets are a "snapshot" of the firm's status on a specific date, income statements reflect performance over a period of time. Publicly held companies generate income statements every quarter (three months) and for their annual report. INCOME STATEMENT (Thousands of dollars) Net revenues - Cost of goods sold - Operating expenses - Research & development expense Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes Net income - Preferred dividends Net income available to common shareholders Dividends Addition to retained earnings The gross margin for this fictional company is: O 14.7% O 9.2% 18.2% 60.3% O 33.3% $ $ On the income statement, interest expense is $ Wages are considered a(n) $ $ In this example, the firm pays…

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The following information of Red Oak Manufacturing is available for the current year: Net income $844,200 Net sales 6,809,000 Average total assets 5,911,000 Average stockholders' equity 2,575,000 The total leverage as per the DuPont analysis computation is

Trend Analysis Critelli Company has provided the following comparative information:       Year 5     Year 4     Year 3     Year 2     Year 1 Net income $940,300   $810,600   $681,200   $582,200   $493,400   Interest expense 319,700   291,800   252,000   192,100   153,000   Income tax expense 300,896   226,968   190,736   151,372   118,416   Average total assets 5,779,817   5,103,704   4,360,748   3,704,785   3,153,171   Average stockholders' equity 1,975,420   1,769,869   1,548,182   1,373,113   1,203,415     You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:     Industry Ratios Return on total assets 21.5 %   Return on stockholders’ equity 44.4 %   Times interest earned 4.6     Instructions: Calculate three ratios for Year 1 through Year 5. Round to one decimal place. a.  Return on total assets: Year 5…

Here is the operating data for Yalis Cleaning, Inc.: After analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenue as the base amount. Round percentages to two decimal places.

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