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