Refer to Starbucks' Statement of Cash Flows. The 2021 "Net gain resulting from divestiture of certain retail operations" in the Operating section relates a gain of $864.5 million on the sale of operations in South Korea. (That gain was included on the Statement of Earnings in the line, "Net gain from divestiture of certain operations.") Assume that "Net proceeds from divestiture of certain operations" in the Investing section relates only to the sale of those operations. 

1. What does "Net gain resulting from divestiture of certain retail operations" in the Operating section represent? Why is it there on the Statement of Cash Flows? 

2. What does "Net proceeds from divestiture of certain operations" in the Investing section represent? Why is it there? 

3. What is the total effect of this transaction on cash from investing activities? 

4. What is the effect of this transaction on Net income?

Answer rating: 100% (QA)

1 Net gain resulting from divestiture of certain retail operations in the Operating section represen... View the full answer