Analyzing Starbucks's Balance Sheet Disclosures Keview the financial statements and related notes of Starbucks in Appendix A. Required: Answer the following questions pertaining to Starbucks's balance sheet as of October 1, 2017, and related information. (Note: You do not need to make any calculations. All answers may be found in the financial report.) If required, round your answers to one decimal place. 1. What was the amount of the current assets and current liabilities? Current assets $ 14,365,6 X million Current liabilities $ 8,908,60 x million 5. What was the single largest current asset and current liability? Single largest current asset Cash and cash equivalents $ 2,462,30 X million Single largest current liabilities Accrued liabilities $1,934,50 x million B. What was the amount in the allowance for doubtful accounts? s million 4. What is the par value of the company's common stock? How many shares were issued and outstanding? Common stock $ 0.001 (Round your answer to three decimal places.) Shares issued and outstanding 1,431,60 x million $. What was the total amount of inventory? $ 1,364,00 x million What were the principal categories of inventory? All of the choices are correct. 5. What costing method was used for inventories? Lower of cost or market . What was the total property, plant, and equipment before and after accumulated depreciation? Before accumulated depreciation: $ 4,919,50 X million after accumulated depreciation: $ million 3. What was the accumulated depreciation? $ million What method does the company use to depreciate its property, plant, and equipment? Straight-line method million in 2021; $ million in 2022: $ million in 2023; $ million in 2024; $ million in 2026; and $ million in 2045 p. What was the long-term debt? $ 3,932,60 x million When is the debt due? The long-term notes are due as follows $ million in 2018: 5 10. What was the retained earnings balance? s 5,563,20 X million What caused retained earnings to change in 2017? All of the choices are correct. 1. What was the accumulated other comprehensive income / (loss) balance? $ 1,556,00 x million 12. What was the noncontrolling interest balance? $ 6,900,00 x million Item 8. Financial Statements and Supplementary Data STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share data) Oct 1. 2017 Oct 2 2016 Sep 27, 2015 S S 17,650.7 2.355.0 2,381.1 22,386,8 9,038.2 6,493.3 553.8 1,011.4 1.393.3 153.5 18,643.5 391.4 4,134.7 16,844.1 2,154.2 2,317.6 21,315.9 8,511.1 6,064.3 545.4 980.8 1.360.6 15.197.3 1.861.9 2,103.5 19.162.7 7,787.5 5,411.1 522.4 893.9 1,196,7 Fiscal Year Ended Net revenues: Company operated stores Licensed stores CPG, foodservice and other Total net revenues Cost of sales including occupancy 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 Loss on extinguishment of debt Interest income and other, net Interest expense Earnings before income taxes Income tax expense Net camnings including noncontrolling interests Net eamings attributable to noncontrolling interests Net earings attributable to Starbucks Eamings per share -- basic Earings per share ---diluted Weighted average shares outstanding: Basic Diluted 17.462.2 318.2 4,171.9 15,811.6 249.9 275.3 (92.5) 4,317.5 1.432.6 2.884.9 0.2 108.0 (81.3) 4,198.6 1.379.7 2.818.9 1.2 2,817.7 1.91 1.90 3,601.0 390.6 (61.1) 43.0 (70.5) 3.903.0 1.143.7 2.759.3 1.9 2.757.4 $ S 2.884.7 1.99 1.97 S S 1.84 $ $ S S 1.82 1,449.5 1.461.5 1.471.6 1,486.7 1.495.9 1.513.4 See Notes to Consolidated Financial Statements. A-16 Appendix A Starbucks Corporation's Annual Report (Excerpts) STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Oct 1, 2017 2,884.9 Oct 2. 2016 2.818.9 Sep 27. 2015 2,759.3 S S Fiscal Year Ended Net earnings including noncontrolling interests Other comprehensive income (loss), net of tax: Unrealized holding gains (losses) on available-for-sale securities Tax (expense)benefit Unrealized gains/losses) on cash flow hedging instruments Tax (expense benefit Unrealized gains/(losses) on net investment hedging instruments Tax (expense) benefit Translation adjustment and other Tax (expense) benefit Reclassification adjustment for net (gains Wlosses realized in net earnings for available-for- sale securities, hedging instruments, and translation adjustment Tax expense/(benefit Other comprehensive income (loss) Comprehensive income including noncontrolling interests Comprehensive income (loss) attributable to noncontrolling interests Comprehensive income attributable to Starbucks (9.5) 2.9 53.2 (12.6) 20.1 (7.4) (38.3) 3.5 (1.3) (109.6) 27.5 1.4 (0.5) 47.6 (16.8) 4.3 (1.6) (222.7) 6.0 85.5 19,0 (67.2) 14.0 (47.2) 2,837.7 0.2 2,837.5 78.2 (11.8) 91.0 2,909,9 1.2 2.908,7 (65.9) 23.5 (224.7) 2,534.6 (29.2) 2,563.8 S S S See Notes to Consolidated Financial Statements. Appendix A Starbucks Corporation's Annual Report (Excerpts) A.1) A-1/ STARBUCKS CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except per share data) Oct 1. 2017 Oct 2 2016 $ $ 2,462.3 228.6 870.4 1,364.0 358.1 5,283.4 542.3 481.6 4,919.5 795.4 362.8 441.4 1,539 2 14,365.6 2.128.8 134.4 768.8 1,378.5 347.4 4,757.9 1.141.7 354.5 4.533.8 885.4 403.3 516,3 1,719.6 14,312.5 S ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Long-term investments Equity and cost investments Property, plant and equipment, net Deferred income taxes, net Other long-term assets Other intangible assets Goodwill TOTAL ASSETS LIABILITIES AND EQUITY Current liabilities: Accounts payable Accrued liabilities Insurance reserves Stored value card liability Current portion of long-term debt Total current liabilities Long-term debt Other long-term liabilities Total liabilities Shareholders equity: Common stock (50.001 par value) -- authorized. 2,400.0 shares; issued and outstanding, 1,431.6 and 1,460.5 shares, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders' equity Noncontrolling interests Total equity TOTAL LIABILITIES AND EQUITY $ 782.5 1,934.5 215.2 1,288.5 730.6 1,999.1 246.0 1.171.2 399.9 4.546.8 3,185.3 689.7 4,220.7 3,932.6 755.3 8,908.6 8,421.8 1.4 41.1 5,563.2 (1556) 5,450.1 6.9 1.5 41.1 5.949.8 (108.4) 5.884.0 6.7 5.890.7 14,312.5 5.457.0 14,365.6 $ See Notes to Consolidated Financial Statements. STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Oct 1, 2017 Oct 2 2016 Sep 27. 2015 s 2,884.9 S 2,818,9 S 2,759,3 1.067.1 95.1 (310.2) 186.6 (93.5) 1.030.1 265.7 (250.2) 223.3 (6.1) 933.8 21.2 (1902) 148.2 (394.3) 61.1 209.8 (1324) 218.1 (122.8) 176.0 (77.5) 87.2 68.9 45.1 53.8 (96.8) 14.0 46.4 130.8 (4.7) 4,174.3 (55.6) (67.5) 46.9 180.4 248.8 4.575.1 (82.8) (207.9) 137.7 170.3 261.5 3,749.1 (674.4) 1,054.5 149.6 (1,585.7) 680.7 27.9 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/sale of equity in joint ventures and certain retail operations Loss on extinguishment of debt Stock-based compensation Excess tax benefit on share-based awards Goodwill Impairments Other Cash provided by changes in operating assets and liabilities: Accounts receivable Inventories Accounts payable Stored value card liability Other operating assets and liabilities Net cash provided by operating activities 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 sale of equity in joint ventures and certain retail operations Other Net cash used by investing activities FINANCING ACTIVITIES: Proceeds from issuance of long-term debt Repayments of long-term debt Cash used for purchase of non-controlling interest Proceeds from issuance of common stock Excess tax benefit on share-based awards Cash dividends paid Repurchase of common stock Minimum tax withholdings on share-based awards Other Net cash used by 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, net of refunds (567.4) 600.6 18.8 (284.3) (1.303.7) 8.9 (1,519.4) 85.4 54.3 (850,0) (1.440.3) 69.6 24.9 (2.222.9) 6.8 (1.520.3) 1,254.5 750.2 (400.0) 150.8 77.5 (1.450.4) (2,042.5) (82.8) (4.4) (3,001.6) 10.8 333.5 160.7 122.8 (1.178.0) (1.995.6) (106.0) (8,4) (1,750.0) (3.5) 598.7 848.5 (610.1) (360.8) 191.8 132.4 (928.6) (1.436.1) (75.5) (18.1) (2,256.5) (150.6) (178.3) 2.128.8 2,462.3 1,530.1 2.128.8 1,708.4 1,530.1 $ S 74.7 S S 96.6 1.389.1 S S S $ 69.5 1,072.2 878.7