Be sure to show your work for all calculations and CIRCLE ALL FINAL ANSWERS, especially the ratios! You can access Starbucks annual report for 2016 and other years by following the directions How to find Starbucks 2016 Annual Report: go to http://www.starbucks.com click on investor relations (bottom of the page under about us) click on annual reports (right hand side of page under Financial Information) click on FY6 Annual Report on Form 10K

Using the Financial Statements for Starbucks for 2016 (starting on page 45 in the annual report) compute the following ratios for 2016 and 2015. For 2015 ratios requiring averages you will need to look at the 2015 (or 2014) Annual Report and Financial Statements. You will find the ratio formulas in Chapter 15. You must show your work for these computations! Also, for any computations requiring Net Income, use Net Earnings Attributable to Starbucks. (35 pts) A. Working Capital B. Current Ratio C. Accounts Receivable Turnover D. Number of Days Sales in Receivables E. Inventory Turnover F. Number of Days Sales in Inventory G. Ratio of Fixed Assets to Long-Term Liabilities H. Ratio of Liabilities to Stockholders Equity I. Number of Times Interest Charges Are Earned J. Profit Margin (you will need to look this one up) K. Ratio of Sales to Assets L. Rate Earned on Total Assets M. Rate Earned on Stockholders Equity N. Earnings per Share (EPS) on Common Stock O. Price-Earnings (P/E) Ratio (For Market Price, use an average of high and low for last quarter of 2016 (you can find this in the annual report in the Management Discussion and Analysis Section) P. Dividends per Share Q. Dividend Yield R. Would you invest in Starbucks? Clearly and thoroughly explain your reasoning. To support your answer, use at least five of the above ratios to justify your answer. You can also use any additional factors, information, or research to justify your response. When identifying the ratios, be sure to do the following: I. Name each ratio. II. Indicate the importance of the ratio (what it is intending to measure). III. Explain why you chose the ratio to justify your decision. Please Note: your answer to r could count up to 15 points of the total points allocated to question 2; be sure to give adequate thought and effort to this question and be sure to use your own words. Please explain how you got the answers.