CHAPTER $3$ Income Flows versus Cash Flows: Understanding the Statement of Cash Flows

INTEGRATIVE CASE $3\mathrm{.}1$

Starbucks

Exhibit $3\mathrm{.}34$ presents a statement of cash flows for Starbucks for $2010,2011,$ and $2012.$ This state ment is an expanded version of the statement of cash flows for Starbucks shown in Exhibit $1\mathrm{.}28.$

$($Continued

Starbucks

$219$

Exhibit $3\mathrm{.}34($Continued$)$

FINANCING ACTIVITIES:

$($Payments$)/$proceeds from short$-$term borrowings Purchase of noncontrolling interest

Proceeds from issuance of common stock

Excess tax benefit from exercise of stock options

Cash dividends paid

Repurchase of common stock

Minimum tax withholdings on share$-$based awards

Other

Net cash used by financing activities

Effect of exchange rate changes on cash and cash equivalents

Net increase $($decrease$)$ in cash and cash equivalents

$\backslash$table$[[(30\mathrm{.}8),30\mathrm{.}8,-],[-,(27\mathrm{.}5),(45\mathrm{.}8)$

g$.$ Discuss the relations among net income, non$-$working capital adjustments, working capital adjustments, operating cash flows, and EBITDA for the three years. Are the patterns similar or different? What are the primary determinants of the differences between the summary measures net income, operating cash flows, and EBITDA?