1: 1. Using the data in the exhibit below, please calculate the following ratios for Starbucks in the second quarter ending 6/27/2021 versus 6/28/2020. Has performance recovered from the pandemic? Show the ratio numbers for each metric in the space provided below. (20 points) (a) Gross profit margin in Q2-2021 versus Q2-2020 (b) Operating profit margin in Q2-2021 versus Q2-2020 (c) Net profit margin in Q2-2021 versus Q2-2020 (d) Current ratio in Q2-2021 versus Q2-2020 (e) Times interest-earned (i.e. interest coverage) in Q2-2021 versus Q2-2020 2. Based on your financial analysis and the case study, what initiative(s) would you recommend Starbucks implement? Please describe. (10 points) 2. Based on your financial analysis and the case study, what initiative(s) would you recommend Starbucks implement? Please describe. (10 points) Income Statement Revenues Cost of Goods Sold Gross profit Operating expenses Depreciation General & admin Other operating, net Operating income (loss) Q2-2021 7,496,5 2.206.0 5,290.5 3,038.3 354.3 494.9 85.7 1,488.71 Q2-2020 4,222.1 1.484.0 2,738.1 2,671.4 361.0 399.9 113.4 36.0 1,411.3 257.1 1,154.2 (9.7) (703.9) Balance Sheet Current assets 120.8 12.7 (812.0) (133.9) (678.1) PPE, Net Operating lease Goodwill Other assets Total assets i Interest expense Other, net Income (loss) before tax Income tax (refund) Net Income (loss) Shareholders Equity Note: Figures in S millions; Numbers in (parentheses) are negative values. Current liabilities Long Term Debt Operating lease obligations Other Liabilities Total Liabilities Q2-2021 Q2-2020 7.931.7 7,806.4 6,151.4 6,241.4 8,065.2 8,134 1 3,597.2 3.595.4 29,374.5 3,672.0 3.656.5 29,476 8 7,799.8 13,619.2 7,597.81 7.254.3 36,271.1 (6,794.3) 7,346.8 14,659.6 7,661.7 7.505.8 37.173.91 (7.799.4)