MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting
11th Edition
ISBN: 9780133877571
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 15, Problem 15.1FSC
Financial Statement Case 15−1
Details about a company’s investments appear in a number of places in the annual report. Use Starbucks Corporation’s Fiscal 2013 annual report to answer the following questions. Visit http://www.pearsonhighered.com/Horngren to view a link to Starbucks Corporation’s Fiscal 2013 annual report.
Requirements
- What classifications of debt and/or equity security investments does Starbucks hold?
- Review Notes 4 and 6. Give the breakdown of the short-term and long-term investments Starbucks held at September 29, 2013.
- Review Starbucks’s consolidated statement of
cash flows for the year ended September 29, 2013. Identify each item related to the company’s debt and equity security investments, the amount of the item, and the section of the cash flow statement in which the item appears. - Review Note 1, specifically Short-term and Long-term Investments. How are Starbucks’s available-for-sale investments reported? How are Starbucks’s trading investments reported?
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Assigning a Long-Term Debt Rating Using Financial Ratios
Refer to the information below from Stryker’s 2018 financial statements. Use the information to answer the requirements ($ millions).
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Ratio
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Revenue ($ millions)
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EBITA margin
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Operating margin
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FFO / Debt
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(FFO + Interest Expense)/Interest Expense
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REQUIRED
Use the information provided in below to answer the following questions for the financial year ended 31 December 2023.
Note:
Answers to the ratios must be expressed to two decimal places.
Comment on the management of debtors and creditors after calculating the relevant ratios.
Determine the percentage of the profit after tax that has been retained by the company.
Calculate the return on capital employed and comment on your answer.
Would prospective lenders be concerned about the relative proportion of borrowed capital and own capital? Motivate your answer by calculating the relevant ratio.
Calculate the ratio that measures the efficiency with which the non-current and current assets of company were managed.
Comment on the ability of the company to settle its short-term debts under distress conditions. Use a relevant ratio to motivate your answer.
INFORMATION
The following information was obtained from the financial records of Fiona Limited:
Chapter 15 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting
Ch. 15 - Prob. 1QCCh. 15 - Which of the following investments is most likely...Ch. 15 - Prob. 3QCCh. 15 - A company invested $45,000 in Yale Co. stock. The...Ch. 15 - Prob. 5QCCh. 15 - Prob. 6QCCh. 15 - Prob. 7QCCh. 15 - Prob. 8QCCh. 15 - Prob. 9QCCh. 15 - Prob. 10QC
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQCh. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. S15.1SECh. 15 - Prob. S15.2SECh. 15 - Prob. S15.3SECh. 15 - Prob. S15.4SECh. 15 - Prob. S15.5SECh. 15 - Prob. S15.6SECh. 15 - Prob. S15.7SECh. 15 - Prob. E15.8ECh. 15 - Prob. E15.9ECh. 15 - Prob. E15.10ECh. 15 - Prob. E15.11ECh. 15 - Prob. E15.12ECh. 15 - Prob. E15.13ECh. 15 - Prob. E15.14ECh. 15 - Prob. E15.15ECh. 15 - Prob. E15.16ECh. 15 - Prob. E15.17ECh. 15 - Prob. P15.18APGACh. 15 - Prob. P15.19APGACh. 15 - Prob. P15.20APGACh. 15 - Prob. P15.21BPGBCh. 15 - Prob. P15.22BPGBCh. 15 - Prob. 23CPCh. 15 - Prob. 15.1DCCh. 15 - Prob. 15.1EICh. 15 - Prob. 15.1FCCh. 15 - Financial Statement Case 151 Details about a...
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