Obtain from the internet or from the link below the 2017 and 2018 annual reports for Starbucks. Use the information in t...
Obtain from the internet or from the link below the 2017 and 2018 annual reports for Starbucks. Use the information in the financial statements to respond to the following questions:
1. Ratio Analysis: Compute the following ratios for 2017 and
2018 for Starbucks?
a. Current Ratio
b. Quick Ratio
c. Accounts Receivable Turnover Ratio
d. Inventory Turnover Ratio
e. Debt-to-Equity Ratio
f. Return on Equity
g. Return on Assets
h. Quality of Net Income (Cash Flows from Operating
Activities/Net Income)
i. Profit Margin
2. What does each ratio measure and what does your results suggest
about the company?
3. If available, find the industry ratios for the most recent year, compare to your results, and discuss why you believe your company differs or is similar to the industry.
4. Were there any economy, industry or company-specific factors that impact Starbuck’s future income and growth? If so, briefly discuss.
You can access 2017 and 2018 annual accounts for Starbucks from internet or from this link:
https://s22.q4cdn.com/869488222/files/doc_financials/annual/2018/2018-Annual-Report.pdf
Homework Answers
| 1 | Current Ratio | 2018 | 2017 | |||
| Current Assets | $ 12,494.20 | 2.198057774 | $ 5,283.40 | 1.251783 | ||
| Current Liabilities | $ 5,684.20 | $ 4,220.70 | ||||
| 2 | Quick Ratio | |||||
| Cash + Accts. Rec.+Marketable Securities | $ 9,630.90 | 1.694328138 | $ 3,561.30 | 0.84377 | ||
| Current Liabilities | $ 5,684.20 | $ 4,220.70 | ||||
| 3 | Account Receivable Turnover Ratio | |||||
| Net Credit Sales | $ 24,719.50 | 20.31266691 | $ 22,386.80 | 20.31267 | ||
| Average Accounts receivable | $ 1,216.95 | $ 1,102.11 | ||||
| 4 | Inventory Turnover Ratio | |||||
| Cost Of Goods Sold | $ 10,174.50 | 4.928908805 | $ 9,034.30 | 4.928909 | ||
| Average Inventory | $ 2,064.25 | $ 1,832.92 | ||||
| 5 | Debt-to-Equity Ratio | |||||
| Total Liabilities | $ 22,980.60 | 19.64993587 | $ 8,908.60 | 1.634576 | ||
| Total Shareholder Equity | $ 1,169.50 | $ 5,450.10 | ||||
| 6 | Return On Equity Ratio | |||||
| Net Income | $ 24,719.50 | 21.1368106 | $ 22,386.80 | 4.107594 | ||
| Shareholders Equity | $ 1,169.50 | $ 5,450.10 | ||||
| 7 | Return On Equity Ratio | |||||
| Net Income | $ 24,719.50 | 0.934793789 | $ 22,386.80 | 0.934794 | ||
| Average Total Assets | $ 26,443.80 | $ 23,948.38 |
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Obtain from the internet or from the link below the 2017 and 2018 annual reports for Starbucks. Use the information in t...
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Average other liabilities
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The following information is from the 2017 annual report of
Weber Corporation, a company that supplies manufactured parts to
the household appliance industry.
Average total assets
$
24,500,000
Average interest-bearing debt
10,000,000
Average other liabilities
2,250,000
Average shareholders' equity
12,250,000
Sales
49,000,000
Interest expense
800,000
Net income
2,450,000
Required:
Compute Weber Corporation’s return on assets (ROA) for 2017
using a combined federal and state income tax rate of 40% where
needed.
Compute the profit margin and asset turnover components of...
2018 $ 154 2017 $ 198 448 547 $ 1,193 423 630 1,207 $ Cash Accounts receivable Inventory Current assets Plant and equipment Less accumulated depreciation Net plant and equipment Total assets $ 2,205 (1,001) $ 2,604 (1,198) $ 1,204 $ 2,397 $ 1,406 $ 2,613 $ 149 198 0 198 $ $ 152 301 596 897 $ 794 $ LIABILITIES AND OWNERS' EQUITY Accounts payable Notes payable current (9.00% interest) Current liabilities Bonds (8.33% interest) Total debt Owners' equity...
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