Please find the Consolidated Statements of Earnings and the Consolidated Statement s of Cash Flows for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Please find the Consolidated Statements of Earnings and the Consolidated Statement s of Cash Flows for Starbucks Corporation below. Use the information contained in th ose financial statements to answer the following questions. Please note, Cost of Goo ds Sold is represented by "Product and distribution costs" on the Cash Flow Statemen t. 1. What is the amount of inventory purchases made by Starbucks during fiscal year 2020? 2. Assuming that the entire balance of accounts payable relates to suppliers of inven tory, how much did Starbucks pay to its inventory suppliers during fiscal year 202 0? 3. For purposes of calculating net cash provided by operating activities, "Defer red revenue" is added to net earnings for fiscal year 2020 but subtracted fro m net earnings for fiscal year 2019. Please explain what is represented by t he activity for each year. 4. What was the net book value of the investments sold during fiscal year 2020? Ass ume that Starbucks recorded gains of $6 (million) on the sale of investments durin g the year. 5. Starbucks is currently using a straight-line depreciation policy. If Starbucks were to use accelerated depreciation what would be the effect on the net cash provided by operating activities? Would it increase, decrease, or stay the same? Fiscal Year Ended Net revenues: Company-operated stores Licensed stores Other Total net revenues Product and distribution costs Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Restructuring and impairments Total operating expenses Income from equity investees Operating income Gain resulting from acquisition of joint venture Net gain resulting from divestiture of certain operations Interest income and other, net Interest expense Earnings before income taxes Income tax expense Net earnings including noncontrolling interests Net loss attributable to noncontrolling interests Net earnings attributable to Starbucks Earnings per share-basic Earnings per share-diluted Weighted average shares outstanding: STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share data) Basic Diluted S S $ Sep 27, 2020 19,164.6 S 2,327.1 2,026.3 23,518.0 7,694.9 10,764.0 430.3 1,431.3 1,679.6 278.7 22,278.8 322.5 1,561.7 39.7 (437.0) 1,164.4 239.7 924.7 (3.6) 928.3 $ 0.79 $ 0.79 $ 1,172.8 1,181.8 Sep 29, 2019 21,544.4 S 2,875.0 2,089.2 26,508.6 8,526.9 10,493.6 371.0 1,377.3 1,824.1 135.8 22,728.7 298.0 4,077.9 622.8 96.5 (331.0) 4,466.2 871.6 3,594.6 (4.6) 3.599.2 2.95 2.92 1,221.2 1,233.2 S S S Sep 30, 2018 19,690.3 2,652.2 2,377.0 24,719.5 7,930.7 9,472.2 554.9 1,247.0 1,708.2 224.4 21,137.4 301.2 3,883.3 1,376.4 499.2 191.4 (170.3) 5,780.0 1,262.0 4,518.0 (0.3) 4,518.3 3.27 3.24 1,382.7 1,394.6 Fiscal Year Ended OPERATING ACTIVITIES: Net earnings including noncontrolling interests Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Deferred income taxes, net Income earned from equity method investees Distributions received from equity method investees Gain resulting from acquisition of joint venture Net gain resulting from divestiture of certain retail operations Stock-based compensation Goodwill impairments Non-cash lease cost Loss on retirement and impairment of assets Other Cash provided by/(used in) changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Income taxes payable Accounts payable Deferred revenue Operating lease liability Other operating assets and liabilities Net cash provided by operating activities STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) INVESTING ACTIVITIES: Purchases of investments Sales of investments Maturities and calls of investments Acquisitions, net of cash acquired Additions to property, plant and equipment Net proceeds from the divestiture of certain operations Other Net cash used in investing activities FINANCING ACTIVITIES: Proceeds from issuance of short-term debt Repayments of short-term debt Proceeds from issuance of long-term debt Repayments of long-term debt Proceeds from issuance of common stock Cash dividends paid Repurchase of common stock Minimum tax withholdings on share-based awards Other Net cash provided by/(used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of period End of period SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest, net of capitalized interest Income taxes S $ $ $ Sep 27, 2020 924.7 $ 1,503.2 (25.8) (280.7) 227.7 248.6 1,197.6 454.4 24.5 (2.7) (10.9) (317.5) (1,214.6) (210.8) 31.0 (1,231.4) 280.5 1,597.8 (443.9) 186.7 73.7 (1,483.6) (44.4) (1,711.5) 1,406.6 (967.7) 4,727.6 298.8 (1,923.5) (1,698.9) (91.9) (37.7) 1,713.3 64.7 1,664.3 2,686.6 4,350.9 $ 396.9 $ 1,699.1 $ Sep 29, 2019 3,594.6 $ 1,449.3 (1,495.4) (250.6) 216.8 (622.8) 308.0 10.5 142.6 45.3 (197.7) (173.0) 922.0 1,237.1 31.9 (30.5) (141.1) 5,047.0 (190.4) 298.3 59.8 (1,806.6) 684.3 (56.2) (1,010.8) 1,996.0 (350.0) 409.8 (1,761.3) (10,222.3) (111.6) (17.5) (10,056.9) (49.0) (6,069.7) 8,756.3 2,686.6 S 299.5 $ 470.1 S Sep 30, 2018 4,518.0 1.305.9 714.9 (242.8) 226.8 (1,376.4) (499.2) 250.3 37.6 75.6 13.4 131.0 (41.2) (839.5) 146.0 391.6 7,109.4 16.4 11,937.8 (191.9) 459.0 45.3 (1,311.3) (1,976.4) 608.2 5.6 (2,361.5) 5,584.1 153.9 (1,743.4) (7,133.5) (62.7) (41.2) (3,242.8) (39.5) 6,294.0 2,462.3 8,756.3 137.1 1,176.9 Please find the Consolidated Statements of Earnings and the Consolidated Statement s of Cash Flows for Starbucks Corporation below. Use the information contained in th ose financial statements to answer the following questions. Please note, Cost of Goo ds Sold is represented by "Product and distribution costs" on the Cash Flow Statemen t. 1. What is the amount of inventory purchases made by Starbucks during fiscal year 2020? 2. Assuming that the entire balance of accounts payable relates to suppliers of inven tory, how much did Starbucks pay to its inventory suppliers during fiscal year 202 0? 3. For purposes of calculating net cash provided by operating activities, "Defer red revenue" is added to net earnings for fiscal year 2020 but subtracted fro m net earnings for fiscal year 2019. Please explain what is represented by t he activity for each year. 4. What was the net book value of the investments sold during fiscal year 2020? Ass ume that Starbucks recorded gains of $6 (million) on the sale of investments durin g the year. 5. Starbucks is currently using a straight-line depreciation policy. If Starbucks were to use accelerated depreciation what would be the effect on the net cash provided by operating activities? Would it increase, decrease, or stay the same? Fiscal Year Ended Net revenues: Company-operated stores Licensed stores Other Total net revenues Product and distribution costs Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Restructuring and impairments Total operating expenses Income from equity investees Operating income Gain resulting from acquisition of joint venture Net gain resulting from divestiture of certain operations Interest income and other, net Interest expense Earnings before income taxes Income tax expense Net earnings including noncontrolling interests Net loss attributable to noncontrolling interests Net earnings attributable to Starbucks Earnings per share-basic Earnings per share-diluted Weighted average shares outstanding: STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share data) Basic Diluted S S $ Sep 27, 2020 19,164.6 S 2,327.1 2,026.3 23,518.0 7,694.9 10,764.0 430.3 1,431.3 1,679.6 278.7 22,278.8 322.5 1,561.7 39.7 (437.0) 1,164.4 239.7 924.7 (3.6) 928.3 $ 0.79 $ 0.79 $ 1,172.8 1,181.8 Sep 29, 2019 21,544.4 S 2,875.0 2,089.2 26,508.6 8,526.9 10,493.6 371.0 1,377.3 1,824.1 135.8 22,728.7 298.0 4,077.9 622.8 96.5 (331.0) 4,466.2 871.6 3,594.6 (4.6) 3.599.2 2.95 2.92 1,221.2 1,233.2 S S S Sep 30, 2018 19,690.3 2,652.2 2,377.0 24,719.5 7,930.7 9,472.2 554.9 1,247.0 1,708.2 224.4 21,137.4 301.2 3,883.3 1,376.4 499.2 191.4 (170.3) 5,780.0 1,262.0 4,518.0 (0.3) 4,518.3 3.27 3.24 1,382.7 1,394.6 Fiscal Year Ended OPERATING ACTIVITIES: Net earnings including noncontrolling interests Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Deferred income taxes, net Income earned from equity method investees Distributions received from equity method investees Gain resulting from acquisition of joint venture Net gain resulting from divestiture of certain retail operations Stock-based compensation Goodwill impairments Non-cash lease cost Loss on retirement and impairment of assets Other Cash provided by/(used in) changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Income taxes payable Accounts payable Deferred revenue Operating lease liability Other operating assets and liabilities Net cash provided by operating activities STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) INVESTING ACTIVITIES: Purchases of investments Sales of investments Maturities and calls of investments Acquisitions, net of cash acquired Additions to property, plant and equipment Net proceeds from the divestiture of certain operations Other Net cash used in investing activities FINANCING ACTIVITIES: Proceeds from issuance of short-term debt Repayments of short-term debt Proceeds from issuance of long-term debt Repayments of long-term debt Proceeds from issuance of common stock Cash dividends paid Repurchase of common stock Minimum tax withholdings on share-based awards Other Net cash provided by/(used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of period End of period SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest, net of capitalized interest Income taxes S $ $ $ Sep 27, 2020 924.7 $ 1,503.2 (25.8) (280.7) 227.7 248.6 1,197.6 454.4 24.5 (2.7) (10.9) (317.5) (1,214.6) (210.8) 31.0 (1,231.4) 280.5 1,597.8 (443.9) 186.7 73.7 (1,483.6) (44.4) (1,711.5) 1,406.6 (967.7) 4,727.6 298.8 (1,923.5) (1,698.9) (91.9) (37.7) 1,713.3 64.7 1,664.3 2,686.6 4,350.9 $ 396.9 $ 1,699.1 $ Sep 29, 2019 3,594.6 $ 1,449.3 (1,495.4) (250.6) 216.8 (622.8) 308.0 10.5 142.6 45.3 (197.7) (173.0) 922.0 1,237.1 31.9 (30.5) (141.1) 5,047.0 (190.4) 298.3 59.8 (1,806.6) 684.3 (56.2) (1,010.8) 1,996.0 (350.0) 409.8 (1,761.3) (10,222.3) (111.6) (17.5) (10,056.9) (49.0) (6,069.7) 8,756.3 2,686.6 S 299.5 $ 470.1 S Sep 30, 2018 4,518.0 1.305.9 714.9 (242.8) 226.8 (1,376.4) (499.2) 250.3 37.6 75.6 13.4 131.0 (41.2) (839.5) 146.0 391.6 7,109.4 16.4 11,937.8 (191.9) 459.0 45.3 (1,311.3) (1,976.4) 608.2 5.6 (2,361.5) 5,584.1 153.9 (1,743.4) (7,133.5) (62.7) (41.2) (3,242.8) (39.5) 6,294.0 2,462.3 8,756.3 137.1 1,176.9
Expert Answer:
Answer rating: 100% (QA)
1 According to the Starbucks fiscal year 2020 cash flow statement the amount of inventory purchases made by Starbucks during fiscal year 2020 was 4026 million This can be calculated by subtracting the ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Holmes Corporation is a leading designer and manufacturer of material handling and processing equipment for heavy industry in the United States and abroad. Its sales have more than doubled, and its...
-
The consolidated statements of cash flows and related note disclosure for Sirius XM Canada Holdings Inc. are in Exhibits 5-16A and B. Sirius broadcasts satellite radio channels to subscribers....
-
The consolidated statements of cash flows and related note disclosure for Big Rock Brewery Inc. are in Exhibits 5-17A and B. Required: a. In total, how much did Big Rocks cash and cash equivalents...
-
A 12-in. diameter circular plate is placed over a fixed bottom plate with a 0.1-in. gap between the two plates filled with glycerin as shown in Fig. P1.89. Determine the torque required to rotate the...
-
The Running Store is a chain of sporting goods stores. The Running Store is interested in using some of its excess cash to invest in securities. It decides to buy the following securities: Prepare...
-
An older man has just lost his job after repeated warnings to come to work sober and seek help for his alcohol addiction. He has decided that he should get help now. Too little, too late, he says...
-
Why does it make sense to offer free, in-store Wi-Fi connections given the way that people like to shop these days?
-
Developing Standard Costs ColdKing Company is a small producer of fruit-flavored frozen desserts. For many years, Cold- Kings products have had strong regional sales oa the basis of brand...
-
A slab door, 2m high, 0.75m wide, 40mm thick, and with a mass of 36kg, is fitted with an automatic door closer. The door opens against a torsion spring with a modulus of 10N-m/radian. Determine the...
-
Cinder Inc. is a Canadian-controlled private corporation based in your province. The company operates a wholesale business. The following information is provided for its year ended May 31, 2020: 1....
-
For the function f(x)=(x+4)^(2), find the equation of the tangent line to the graph of f at x=3. If the equation of the tangent line is written as y=mx+b what are m and b ?
-
A combined separating and throttling calorimeter recorded the following observations : Pressure in the steam main \(=15\) bar Mass of water drained from the separate \(=0.55 \mathrm{~kg}\) Mass of...
-
A vessel containing \(5 \mathrm{~kg}\) of steam at \(8 \mathrm{bar}, 250^{\circ} \mathrm{C}\) is cooled by pouring water over the outer surface till the inside pressure falls to 5 bar. Calculate...
-
Comparing your organization's processes and performance metrics with other top performing or best-in-class organizations is called what?
-
Determine the change in internal energy when one \(\mathrm{kg}\) of steam expands from \(10 \mathrm{bar} 300^{\circ} \mathrm{C}\) to 0.5 bar and 0.9 dry. Take \(c_{p s}=2.1 \mathrm{~kJ} /...
-
One \(\mathrm{kg}\) of steam at 10 bar exists at \(200^{\circ} \mathrm{C}\) Calculate the enthalpy, specific volume, density internal energy and entropy. Take \(c_{p s}=2.1 \mathrm{~kJ} /...
-
There is a homing blob guard between you and the exit. Squash it with a boulder and then head to the exit. Try to write your solution so it has three user-defined functions: getInPosition (),...
-
How much more interest will be earned if $5000 is invested for 6 years at 7% compounded continuously, instead of at 7% compounded quarterly?
-
What is hedge accounting?
-
What happens if a significant amount of held-to-maturity investments is reclassified as available-for-sale?
-
The chapter describes different phases in the harmonization efforts of the IASC. Required: Identify one such phase and prepare a brief report describing its importance in the overall scheme of...
-
Using the transformation \(w=\sin (z)\), determine the equation for the stream function for flow inside the semi-infinite region \(y \geq 0,-\pi / 2 \leq x \leq \pi / 2\) shown in Figure P9.17. -/2...
-
Show that the stream function for flow in the corner of Figure P9.16 is given by: \[\psi(r, \theta)=A r^{4} \sin (4 \theta)\] Use the transformation \(z=w^{4}\) where \(z=x+i y\) and \(w=\phi+i...
-
Consider the flow formed by placing a source of strength, \(q_{o}\), a distance, \(d\), from an infinitely long wall as shown in Figure P9.18. The velocity potential for this incompressible and...
Study smarter with the SolutionInn App