Using the Starbucks financial statements provided on

Using the Starbucks financial statements provided on Blackboard, calculate and interpret the days to sell and gross profit ratios

STARBUCKS CORP
10-K
Income Statement
in millions of dollars, except for per share figures
Fiscal Year Ended10/1/201710/2/20169/27/20159/28/2014
Net revenues:
Company-operated stores$17,650.7$16,844.1$15,197.3$12,977.9
Licensed stores2,355.02,154.21,861.91,588.6
CPG, food service and other2,381.12,317.62,103.51,881.3
Total net revenues$22,386.8$21,315.9$19,162.7$16,447.8
Cost of sales including occupancy costs9,038.28,511.17,787.56,858.8
Store operating expenses6,493.36,064.35,411.14,638.2
Other operating expenses553.8545.4522.4457.3
Depreciation and amortization expenses1,011.4980.8893.9709.6
General and administrative expenses1,393.31,360.61,196.7991.3
Litigation charge (credit)0.00.00.0(20.2)
Restructuring & impairments153.50.00.00.0
Total operating expenses18,643.517,462.215,811.613,635.0
Income from equity investees391.4318.2249.9268.3
Operating income$4,134.7$4,171.9$3,601.0$3,081.1
Gain from the acquisition of joint venture0.00.0390.60.0
Loss on extinguishment of debt0.00.0(61.1)0.0
Interest income and other, net275.3108.043.0142.7
Interest expense(92.5)(81.3)(70.5)(64.1)
Earnings before income taxes$4,317.5$4,198.6$3,903.0$3,159.7
Income taxes (benefit)1,432.61,379.71,143.71,092.0
Net earnings including noncontrolling earnings$2,884.9$2,818.9$2,759.3$2,067.7
Net earnings (loss) attributable to noncontrolling interests0.21.21.9(0.4)
Net earnings attributable to Starbucks$2,884.7$2,817.7$2,757.4$2,068.1
Earnings per share - basic$1.99$1.91$1.84$1.37
Earnings per share - diluted$1.97$1.90$1.82$1.35
Weighted average shares outstanding:
Basic (adjusted for split)1,449.51,471.61,495.91,506.3
Diluted (adjusted for split)1,461.51,486.71,513.41,526.3
Cash dividends declared per share$1.05$0.85$0.68$0.55
STARBUCKS CORP
10-K
Balance Sheet
in millions of dollars
As of10/1/201710/2/20169/27/20159/28/2014
ASSETS
Current assets:
Cash and cash equivalents$2,462.3$2,128.8$1,530.1$1,708.4
Short-term investments228.6134.481.3135.4
Accounts receivable, net870.4768.8719.0631.0
Inventories1,364.01,378.51,306.41,090.9
Prepaid expenses and other current assets358.1347.4334.2285.6
Total current assets$5,283.4$4,757.9$3,971.0$3,851.3
Long-term investments542.31,141.7312.5318.4
Equity and cost investments481.6354.5352.0514.9
Property, plant and equipment, net4,919.54,533.84,088.33,519.0
Deferred income taxes, net795.4885.41,180.81,220.7
Other long-term assets362.8403.3415.9198.9
Other intangible assets441.4516.3520.4273.5
Goodwill1,539.21,719.61,575.4856.2
TOTAL ASSETS$14,365.6$14,312.5$12,416.3$10,752.9
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities:
Accounts payable$782.5$730.6$684.2$533.7
Accrued liabilities1,934.51,999.11,755.31,514.4
Insurance reserves215.2246.0224.8196.1
Stored value card liability1,288.51,171.2983.8794.5
Current portion of long-term debt0.0399.90.00.0
Total current liabilities$4,220.7$4,546.8$3,648.1$3,038.7
Long-term debt3,932.63,185.32,347.52,048.3
Other long-term liabilities755.3689.7600.9392.2
Total liabilities$8,908.6$8,421.8$6,596.5$5,479.2
Shareholders equity:
Common stock ($0.001 par value)1.41.51.50.7
Additional paid-in capital41.141.141.139.4
Retained earnings5,563.25,949.85,974.85,206.6
Accumulated other comprehensive income/(loss)(155.6)(108.4)(199.4)25.3
Total shareholders equity5,450.15,884.05,818.05,272.0
Noncontrolling interests6.96.71.81.7
Total equity5,457.05,890.75,819.85,273.7
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY$14,365.6$14,312.5$12,416.3$10,752.9
STARBUCKS CORP
10-K
Cash Flows
in millions of dollars
Fiscal Year Ended10/1/201710/2/20169/27/20159/28/2014
OPERATING ACTIVITIES:
Net earnings including noncontrolling interests$2,884.9$2,818.9$2,759.3$2,067.7
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization1,067.11,030.1933.8748.4
Deferred income taxes, net95.1265.721.210.2
Income earned from equity method investees(310.2)(250.2)(190.2)(182.7)
Distributions received from equity method investees186.6223.3148.2139.2
Gain resulting from acquisition/sale of equity in joint ventures & certain retail operations(93.5)(6.1)(394.3)(70.2)
Loss on extinguishment of debt0.00.061.10.0
Stock-based compensation176.0218.1209.8183.2
Excess tax benefit on share-based awards(77.5)(122.8)(132.4)(114.4)
Goodwill impairment87.2
Other68.945.153.836.2
Cash provided/(used) by changes in operating assets and liabilities:
Accounts receivable(96.8)(55.6)(82.8)(79.7)
Inventories14.0(67.5)(207.9)14.3
Accounts payable46.446.9137.760.4
Accrued litigation charge0.00.00.0(2,763.9)
Stored value card liability130.8180.4170.3140.8
Other operating assets and liabilities(4.7)248.8261.5418.3
Net cash provided by operating activities$4,174.3$4,575.1$3,749.1$607.8
INVESTING ACTIVITIES:
Purchase of investments(674.4)(1,585.7)(567.4)(1,652.5)
Sales of investments1,054.5680.7600.61,454.8
Maturity and calls of investments149.627.918.8456.1
Acquisitions, net of cash acquired0.00.0(284.3)0.0
Additions to property, plant and equipment(1,519.4)(1,440.3)(1,303.7)(1,160.9)
Cash proceeds from sale of equity in joint ventures85.469.68.9103.9
Other54.324.96.8(19.1)
Net cash used by investing activities($850.0)($2,222.9)($1,520.3)($817.7)
FINANCING ACTIVITIES:
Proceeds from issuance of long-tem debt750.21,254.5848.5748.5
Principal payments on long-term debt(400.0)0.0(610.1)0.0
Cash used for purchase of noncontrolling interest0.00.0(360.8)0.0
Proceeds from issuance of common stock150.8160.7191.8139.7
Excess tax benefit from exercise of stock options77.5122.8132.4114.4
Cash dividends paid(1,450.4)(1,178.0)(928.6)(783.1)
Repurchase of common stock(2,042.5)(1,995.6)(1,436.1)(758.6)
Minimum tax withholdings on share-based awards(82.8)(106.0)(75.5)(77.3)
Other(4.4)(8.4)(18.1)(6.9)
Net cash used by financing activities($3,001.6)($1,750.0)($2,256.5)($623.3)
Effect of exchange rate changes on cash and cash equivalents10.8(3.5)(150.6)(34.1)
Net increase/(decrease) in cash and cash equivalents$333.5$598.7($178.3)($867.3)
CASH AND CASH EQUIVALENTS:
Beginning of period2,128.81,530.11,708.42,575.7
End of the period$2,462.3$2,128.8$1,530.1$1,708.4
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest, net of capitalized interest$96.6$74.7$69.5$56.2
Income taxes, net of refunds$1,389.1$878.7$1,072.2$766.3