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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
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
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:
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:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education