Selected information is available for Tim Hortons Inc. and Starbucks Corporation for a recent fiscal year: ________________________________Tim
Question:
Selected information is available for Tim Hortons Inc. and Starbucks Corporation for a recent fiscal year:
________________________________Tim Hortons..............................Starbucks
____________________________(in CAD millions) ....................(in USD millions)
Beginning of year
Total assets........................................................$2,204.0.................................$ [4]
Total liabilities..............................................................[1]..................................2,973.1
Total shareholders' equity..................................1,154.4.................................4,387.3
End of year
Total assets..........................................................2,284.2.......................................[5]
Total liabilities.....................................................1,094.1.................................3,104.7
Total shareholders' equity.......................................[2].......................................[6]
Changes during year in shareholders' equity ........-
Repurchase of shares............................................18.7.......................................1.1
Dividends...................................................................[3]....................................543.7
Total revenues..................................................3,123.8................................13,604.6
Total expenses.................................................2,716.0.................................12,219.9
Other decreases in shareholders' equity.........222.9....................................112.7
Instructions
(a) Determine the missing amounts for [1] to [6].
(b) Which company has the higher proportion of debt financing at the end of its fiscal year? Of equity financing?
(c) Tim Hortons' year end is the Sunday nearest to the end of December. Starbucks' year end is the last Sunday in September. In addition, Tim Hortons reports its financial results in Canadian dollars and Starbucks reports in U.S. dollars. Is it appropriate to compare these two companies in (b)?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
a All amounts are in millions of dollars Tim Hortons 1 Total liabilities Total assets Total shareholders equity Total liabilities 22040 11544 Total li...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
