Question
Below are balance sheets for Starbucks Corporation, the retail coffee vendor, for fiscal year ending September 30, 2007 and September 30, 2006. Read the statements
Below are balance sheets for Starbucks Corporation, the retail coffee vendor, for fiscal year ending September 30, 2007 and September 30, 2006.
Read the statements along with the notes under them. (in thousands of dollars)
Classificaiton 9/30/07 10/1/06 Assets Current assets:
Cash and cash equivalents 1 $ 281,261 $ 312,606
Short-term investments-available-for-sale securities 83,845 87,542
Short-term investments-trading securities 73,588 53,496
Accounts receivable, net 287,925 224,271
Inventories 691,658 636,222
Prepaid expenses and other current assets 148,757 126,874
Deferred income taxes net 129,453 88,777
Total current assets 1,696,487 1,529,788
Long-term investments-available-for-sale securities 21,022 5,811
Equity and other investments 258,846 219,093
Property, plant, and equipment, net 2,890,433 2,287,899
Other assets 2 219,422 186,917
Other intangible assets 42,043 37,955
Goodwill 215,625 161,478
Total Assets 5,343,878 4,428,941
Liabilities and Shareholders' Equity Current liabilities:
Commercial paper and short-term borrowings 710,248 700,000
Accounts payable 390,836 340,937
Accrued compensation and related costs 332,331 288,963
Accrued occupancy costs 74,591 54,868
Accrued taxes 92,516 94,010
Other accued expenses 257,369 224,154
Deferred revenue 296,900 231,926
Current portion of long-term debt 775 762
Total current liabilities 2,155,566 1,935,620
Long-term debt 550,121 1,958
Other long-term liabilities 354,074 262,857
Total liabilities 3,059,761 2,200,435
Shareholders' equity 2,284,117 2,228,506
Total liabilities and shareholders' equity 5,343,878 4,428,941
Note: 1. Treat cash and cash equivalents as financial assets 2. Treat other assets as operating assets.
STARBUCKS ORPORATION Consolidated Statements of Earnings Fiscal Year Ended 7 1) Prepare reformulated balance sheets for 2007 and 2006 and fill in the table below. (20 points) 2) Below is reformulated income statement for Starbucks Corporation for fiscal year ending September 30, 2007. For fiscal year 2007, calculate the following: return on equity(ROE), return on net operating assets (RNOA), net operating profit margin (NOPM), net operating asset turnover (NOAT). Use the average of beginning-of-year and ending-of-year balance sheet amounts in denominators.
From the reformulate balance sheet, fill in the table below. 2007 2006 OA OL NOA FA FL NFA/NFO SE
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