Cash Flow Statement Assignment | Top Universities

STARBUCKS CORPORATION Ratio Analysis Ratios 2016 2017 2018 Acid test ratio 0.67 0.84 1.69 Acid Test Ratio (Cash and Cash Equivalents + Accounts Receivable + Short-Term = Investments Current Liabilities Solvency ratios: Debt to total assets Debt service coverage 59% 0.56 62% 0.48 95% 0.52 Debt to total assets Debt Service Coverage ratio = Total Liabilities/Total Assets = Cash Flow from Operations/Total Liabilities 60% 2096 Profitability ratios: Gross profit margin Operating profit margin Profit margin Return on assets Asset turnover 13% 60% 18% 13% 20% 1.56 59% 16% 18% 23% 1.28 Gross Profit margin Operating profit margin Profit margin ratio Return on assets ratio Asset turnover ratio = Gross Profit/Net Sales = Operating Income/Net Sales = Net Income/Net Sales = Net Income/(Beginning Assets+Ending Assets)/2 = Net Sales/(Beginning Assets+Ending Assets)/2 Data Source Extracted from Balance Sheet Extracted from Cash Flow Statement Extracted from Income Statement Numerator and Denominator Components: Current Assets Current Liabilities Cash and Cash Equivalents Accounts Receivable Short-term

Investments Inventory Net Income Operating Income Net Sales Revenue Cost of Sales Gross Profit = Total Net Revenue-Cost of Sales including Occupancy costs Cash Flow from Operating Activities Total Long-term Liabilities Total Assets Total Liabilities $ 4,757.90 4,546.8 2,128.8 129 768.8 134.4 1,378.5 2,817.7 4,171.9 21,315.9 8,509.0 $ 5,283.40 4,220.7 2,462.3 2.462. 3 870.4 228.6 1,364.0 2,884.7 4,134.7 22,386.8 9,034.3 $ 12,494.20 5,684.2 8 ,756.3 693.1 181.5 1,400.5 4,518.3 3,883.3 24,719.5 10,174.5 12,806.9 4,697.9 3,875.0 14,312.5 8,421.8 13,352.5 4.251.8 4,687.9 14,365. 6 8,908. 6 14,545.0 11,937.8 17,296.4 2 4,156.4 2 2,980.6 STARBUCKS CORPORATION CONSOLIDATED BALANCE SHEETS (in millions USD, except per share data) Horizontal Analysis Vertical Analysis Oct 2, 2016 Oct 1, 2017 Sep 30, Reference 2018 2017 2018 2017 2018 2016 2017 2018 $ Amount $ Amount % Change % Change $ $ $ $ 2,128.8 134.4 768.8 1,378.5 347.4 4,757.9 1,141.7 354.5 4,533.8 885.4 403.3 516.3 1,719.6 9,554.6 14,312.5 2,462.3 228.6 870.4 1,364.0 358.1 5,283.4 542.3 481.6 4,919.5 795.4 362.8 441.4 1,539. 2 9,082.2 14,365.6 8,756.3 181.5 693.1 1,400.5 1,462.8 12,494.2 267.7 334.7 5,929.1 134.7 412.2 1,042.2 ,541.6 11,662.2 24,156.4 333.5 94.2 101.6 (14.5) 10.7 525.5 (599.4) 127.1 385.7 (90.0) (40.5) (74.9) (180.4) (472.4) 53.1 6,294.0 (47.1) (177.3) 36.5 1,104.7 7,210.8 (274.6) (146.9) 1,009.6 (660.7) 15.67% 70.09% 13.22% -1.05% 3.08% 11.04% -52.50% 35.85% 8.51% – 10.16% -10.04% -14.51% -10.49% -4.94% 0.37% 255.61% -20.60% -20.37% 2.68% 308.49% 136.48% -50.64% -30.50% 20.52% -83.07% 13.62% 136.11% 130.09% 28.41% 68.15% 14.87% 0.94% 5.37% 9.63% 2.43% 33.24% 7.98% 2.48% 31.68% 6.19% 2.82% 3.61% 12.01% 66.76% 100% 17.14% 1.59% 6.06% 9.49% 2.49% 36.78% 3.77% 3.35% 34.25% 5.54% 2.53% 3.07% 10.71% 63.22% 100% 36.25% 0.75% 2.87% 5.80% 6.06% 51.72% 1.11% 1.39% 24.54% 0.56% 1.71% 4.31% 14.66% 48.28% 100% 49.4 3 600.8 2,002.4 2,580.0 9,790.8 $ $ $ $ ASSETS Current assets: Cash and cash equivalents 1 $ Short-term investments Accounts receivable, net 3 Inventories Prepaid expenses and other current assets Total current assets 6=Sum 1 to 5 Long-term investments Equity and cost investments Property, plant and equipment, net Deferred income taxes, net 10 Other long-term assets 11 Other intangible assets 12 Goodwill 13 Total Long Term Assets TOTAL ASSETS 14=Sum 7 to 1 $ LIABILITIES AND EQUITY Current liabilities: Accounts payable 15 $ Accrued liabilities 16 Insurance reserves 17 Stored value card liability and current portion of deferred r 1 8 Current portion of long-term debt Total current liabilities 0=Sum 15 to 1 Long-term debt 21 Deferred revenue Other long-term liabilities 23 Total Long Term Liabilities Total liabilities 4=Sum 20 to 2 Shareholders’ equity: Common stock ($0.001 par value) – authorized, 2,400.0 shares Issued and outstanding, 1,460.5 and 1,485.1 shares, respectively – 2016 Issued and outstanding, 1,431.6 and 1,460.5 shares, respectively – 2017 $ $ $ $ 730.6 1,999.1 246.0 1,171.2 399.9 4,546.8 3,185.3 782.5 1,934.5 215.2 1,288.5 50.71% 18.81% -0.70% 27.50% 19 1,179.3 2,298.4 213.7 1,642.9 349.9 5,684.2 9,090.2 6,775.7 1,430.5 17,296.4 22,980.6 7.10% -3.23% -12.52% 10.02% -100.00% -7.17% 23.46% 51.9 (64.6) (30.8) 117.3 (399.9) (326.1) 747.3 4.4 61.2 812.9 486.8 4,220.7 3,932.6 4.4 750.9 4,687.9 8,908.6 396.8 363.9 (1.5) 354.4 349.9 1,463.5 5,157.6 6,771.3 679.6 12.608.5 14,072.0 5.10% 13.97% 1.72% 8.18% 2.79% 31.77% 22.26% 0.00% 4.82% 27.07% 58.84% 5.45% 13.47% 1.50% 8.97% 0.00% 29.38% 27.38% 0.03% 5.23% 32.63% 62.01% 22 4.88% 9.51% 0.88% 6.80% 1.45% 23.53% 37.63% 28.05% 5.92% 71.60% 95.13% 34.67% 131.15% 153893.18% 90.50% 268.96% 157.96% 689.7 3,875.0 8,421.8 8.87% 20.98% 5.78% $ $ 1.5 13 (0.1) (0.1) -6.67% -7.14% 0.01% 0.01% 0.01% 41.1 Issued and outstanding, 1,309.1 and 1,431.6 shares, respectively – 2018

Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders’ equity Noncontrolling interests Total equity TOTAL LIABILITIES AND EQUITY 26 27 28 9=Sum 25 to 2 41.1 5,949.8 (108.4) 5,884.0 41.1 5,563.2 (155.6) 5,450.1 1,457.4 (330.3) 1,169.5 6.3 1,175.8 24,156.4 (386.6) (47.2) (433.9) 0.2 (433.7) 53.1 0.00% -6.50% 43.54% -7.37% 2.99% -7.36% 0.37% (4,105.8) (174.7) (4,280.6) (0.6) 14,281.2) 9,790.8 0.00% -73.80% 112.28% -78.54% -8.70% -78.45% 68.15% 0.29% 41.57% -0.76% 41.11% 0.05% 41.16% 100% 0.29% 38.73% -1.08% 37.94% 0.05% 37.99% 100% 0.17% 6.03% -1.37% 4.84% 0.03% 4.87% 100% 6.9 30 6.7 31=29+30 32=24+31 $ 5,890.7 14,312.5 $ 5,457.0 14,365.6 $ $ $ STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions USD, except per share data) Horizontal Analysis Vertical Analysis Oct 2, 2016 Oct 1, 2017 Sep 30, 2018 Reference 2016 2017 2018 $ $ $ 3 4=1+2+3 16,844.1 2,154.2 2,317.6 21,315.9 8,509.0 6,064.3 499.2 980.8 1,408.9 0.0 17,462.2 318.2 4,171.9 17,650.7 2,355.0 2,381.1 22,386.8 9,034.3 6,493.3 500.3 1,011.4 1,450.7 153.5 18,643.5 391.4 4,134.7 79.02% 10.11% 10.87% 100% 39.92% 28.45% 2.34% 4.60% 6.61% Fiscal Year Ended Net revenues: Company-operated stores Licensed stores Other Total net revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Restructuring and impairments Total operating expenses Income from equity investees Operating income Gain resulting from acquisition of joint venture Net gain resulting from divestiture of certain operations Interest income and other, net Interest expense Earnings before income taxes Income tax expense Net earnings including noncontrolling interests Net earnings/(loss) attributable to noncontrolling interests Net earnings attributable to Starbucks Earnings per share – basic Earnings per share – diluted Weighted average shares outstanding: Basic Diluted 10 11-Sum 5 to 10 78.84% 10.52% 10.64% 100% 40.36% 29.01% 2.23% 4.52% 6.48% 0.69% 83.28% 1.75% 18.47% 2017 2018 2017 2018 $ Amount $ Amount % Change % Change $ 806.6 $ 2,039.6 4.79% 11.56% 200.8 297.2 9.32% 12.62% 63.5 (4.1) 2.74% -0.17% 1,070.9 2.332.7 5.02% 10.42% 525.3 1,140.2 6.17% 12.62% 429.0 699.9 7.07% 10.78% 1.1 39.0 0.22% 7.80% 30.6 235.6 3.12% 23.29% 41.8 308.3 2.97% 21.25% 153.5 70.9 46.19% 1,181.3 2,493.9 6.76% 13.38% 73.2 (90.2) 23.00% -23.05% (37.2) (251.4) -0.89% -6.08% 1,376.4 88.1 405.7 1631.48% 433.90% 79.2 9.6 77.19% 5.28% (11.2) (77.8) 13.78% 84.11% 118.9 1,462.5 2.83% 33.87% 52.9 (170.6) 3.83% -11.91% 66.0 1,633.1 2.34% 56.61% (1.0) (0.5) -83.33% -250.00% 67.0 1,633.6 2.38% 56.63% 0.1 4.19% 64.32% 0.1 1.3 3.68% 64.47% 19,690.3 2,652.2 2,377.0 24,719.5 10,174.5 7,193.2 539.3 1,247.0 1,759.0 224.4 21,137.4 301.2 3,883.3 1,376.4 499.2 191.4 (170.3) 5,780.0 1,262.0 4,518.0 (0.3) 4,518.3 3.27 3.24 12 79.65% 10.73% 9.62% 100% 41.16% 29.10% 2.18% 5.04% 7.12% 0.91% 85.51% 1.22% 15.71% 5.57% 2.02% 0.77% -0.69% 23.38% 5.11% 18.28% 0.00% 18.28% 81.92% 1.49% 19.57% 13=4-11+12 14 15 16 17 5.4 102.6 (81.3) 4,198.6 1,379.7 2,818.9 18=Sum 13 to 17 93.5 181.8 (92.5) 4,317.5 1,432.6 2,884.9 0.2 2,884.7 1.99 1.97 0.03% 0.48% -0.38% 19.70% 6.47% 13.22% 0.01% 13.22% 0.42% 0.81% -0.41% 19.29% 6.40% 12.89% 0.00% 12.89% 20=18-19 21 1.2 22-20+21 $ $ $ 2,817.7 $ 1.91 $ 1.90 $ $ $ $ 1.3 24 1,449.5 1,461.5 1,382.7 1,394.6 (22.1) (25.2) (66.8) (66.9) -1.50% -1.70% -4.61% -4.58% 1,486.7. Get Accounting Homework Help Today