Question
COMPANY STARBUCKS Using the financial statements, answer the following questions: Look at the income statement and comment on the companys profitability. What is basic earnings
COMPANY STARBUCKS
Using the financial statements, answer the following questions:
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Look at the income statement and comment on the companys profitability. What is basic earnings per share? It may be listed on the income statement itself, or you might have to calculate it.
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Look at the balance sheet. Calculate the current ratio and comment on the companys liquidity. Calculate the debt-to-total-assets ratio and comment on the companys solvency.
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Look at the statement of cash flows Comment on the results of the three sections (operating, financing, investing). Do you think the results are positive or negative? Why?
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Based on your answers to the first three questions, would you invest in this company?
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