Consider the comparative balance sheet and income statement for Starbucks provided in Figures 16.8 and 16.9.

Figure 1.9

Based on these financial statements, determine the following for the year ending October 1, 2006:

a. Return on assets employed

b. Return on owner’s equity

c. Current ratio

d. Acid test ratio

e. Accounts receivable turnover

f. Inventory turnover 

g. Debt to equity ratio 

h. Operating income to total assets 

i. EBIT 

j. EBITDA

Transcribed Image Text:

ASSETS Current Assets Fiscal Year Ended in thousand, except earnings per share Oct 1, 2006 Oct 1, 2005 Cash and Equivalents S 312,606 $ 173.809 Short Term Investments 141,038 133,227 Accounts Receivable 224,271 190,762 Inventories 636,222 546,299 Prepaid Expenses and other 126,874 94,429 Deferred Income Taxes 88,777 70,808 Total Current Assets 1,529,788 1,209,334 Long Term Investments 5,811 60,475 Equity and other Investments 219,093 201,089 Property, Plant, and Equipment 2,287,899 1,842,019 Other Assets Other Intangible Assets 186,917 72,893 37.955 35,09 Goodwill Total Assets 161,478 $ 4,428,941 92,474 $ 3,513,693