Starbucks is a relatively young, fast-growing company that is a pioneer and leader in its industry. Excerpts from its 2012 statement of cash flows are as follows (dollars in millions):

*Change in the cash balance does not always equal the sum of cash from operations, investing, and financing due to adjustments for exchange rate changes.

a. Discuss the cash management profile of Starbucks across the three-year period. Where did the company get its cash, and what did it do with it?
b. Explain how the cash management profile may be representative of a young, fast-growing company.
c. Comment on how this profile reflects the company’s financial condition and performance.
d. What do you think Starbucks’ future cash will look like? Will the company maintain the same profile or change to a new profile?Why?

  • CreatedAugust 19, 2014
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