1. Using the data in the exhibit below, please calculate the following ratios for Starbucks in the fourth quarter ending 12/31/2020 versus 12/31/2019. Has performance recovered from the pandemic? Show the ratio numbers for each metric in the spaco provided below. (18 points) (a) Gross profit margin in Q4-2020 versus Q4-2019 (6) Operating profit margin in Q4-2020 versus Q4-2019 (c) Net profit margin in Q4-2020 versus Q4-2019 (d) Current ratio in Q4-2020 versus Q4-2019 () Times-interest-earned (i.c. interest coverage) in Q4-2020 versus 04-2019 2. Based on your financial analysis and our case discussion, what initiative(s) would you recommend Starbucks implement? Please describe. (12 points) Income Statement (Smillions) Total Revenue Cost of Sales Gross profit Operating expenses Depreciation and amortization General and administrative Restructuring charges ncome from equity investors Operating income terest expense her income, net Earnings before tax Quarter Ending 12/31/2020 12/31/2019 6,749.4 7,097.1 2,049.1 2,236.4 4,700.3 4,860.7 2,959.1 2,923.3 366.1 351.0 472.1 434.2 72.2 6.3 82.7 73.9 Balance sheet Cash & short-term investment Accounts receivable, net Inventory Other, current assets Total current assets PPE, net Operating lease Goodwill Other assets Total assets 12/31/2020 12/31/2019 5,263.6 3.108.9 888.0 908.1 1,471.5 1,408.7 734.4 474.0 8,357.5 5,899.7 6,177.9 6,390.9 8,199.4 8,358.5 3,706.8 3,515.9 3,526.8 3,566.3 29,968.4 27,731.3 913.5 120.7 15.5 808.3 1,219.8 91.9 15.9 1,143.8 Total current liabilities Long-term debt Operating lease hability 7,883.9 14,673.5 7,754.5 8,675.5 10,653.2 7,711.7 4 points) In State 12/31 Arevalt . 1 11 14715 5.9 Total Revenue Contot Sales Oro profile Operating expense Depreciation and amortiration General and ministrative Restructuring chargea Income from equity investore Openiting income Interest expense Other income, net Earnings before tax Income tax rer de 13/5122070 12/31019 6,749.4 7.0071 2,049.1 2.236.4 4.7003 4,100.7 2,959.1 2,9233 300.1 351.0 172.1 4342 722 6,3 82.7 73.2 913.5 1,219.8 120.7 91.9 15.5 15.9 808.3 1,143.8 186.1 258.5 622.2 885.3 Total sucre PPE, et Operating leare Choodwill other wat Total secta 1,3775 6,1739 3.190 1,706 3.526. 29,90LA 3585 3,919 3.5065 277313 Total current liabilities Lang term debt Operating leone liability Other liabilities Total Liabilities Total Equity 7,883,9 14,6735 274.5 7.560.5 37,872.4 (7.904.0) 8,8755 10,653.2 7,711.7 74500 34.490.4 6,759.1) Not income