Corporate Life Cycle Problem: Instructions: 1: Enter the Net cash provided (used) for each business activity" from a public company's Statement of Cash Flows in 2020. Use the same company financial statements from your Ch7 case study assignment. 2: Identify the likely phase in the company's corporate life cycle. Net cash Net cash Net cash provided (Used) provided (Used) provided (Used) by Operating by Investing by Financing Company (2020 Annual Report) Net Income Activities Activities Activities Likely Phase in the Company's Corporate Life Cycle Starbucks 2. Instructions for Posting (200 to 300 words - 60pts): a. Provide an explanation for a company's Growth Phase: 1- Describe a company's likely cash from operations in the growth phase. 2- Describe two different ways a company will likely make up for a cash dificiency when in the growth phase. 2020 2019 4.350.9 $ 2.686.6 70.5 879.2 1,529.4 281.2 883.4 1.551.4 231.4 739 5 13 7.8064 .600.4 206,1 200. 478 478.7 6,241.4 8,134.1 1,789.9 568.6 552.1 488.2 5,653.9 220.0 396.0 6,431.7 1,765.8 479.6 781.8 3.490,8 19.219.6 3,597.2 29.374.5 $ s 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 g-term investments Equity investments Property, plant and equipment, net Operating lease, right-of-use asset Deferred income taxes, net Other long-term assets Other intangible assets Goodwill TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) Current liabilities: Accounts payable Accrued liabilities Accrued payroll and benefits Income taxes payable Current portion of operating lease liability Stored value card liability and current portion of deferred revenue Short-term debt Current portion of long-term debt Total current liabilities Long-term debt Operating lease liability Deferred revenue Other long-term liabilities Total liabilities Shareholders' deficit: His dem Common stock ($0.001 par value) - authorized, 2,400.0 shares, issued and outstanding, 1,173.3 and 1.184.6 shares, respectively Additional paid-in capital Retained deficit Accumulated other comprehensive loss Total shareholders' deficit Noncontrolling interests Total deficit TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) 1.189.7 1,753.7 664.6 1.291.7 1.269.0 997.9 1,160.7 696,0 98.2 1.248,8 1.456.5 438.8 720.0 1.249.9 7.346,8 14,659.6 7,661.7 6,598,5 907.3 37,173.9 6,168.7 11.167.0 6,744.4 1.370.5 25,450.6 1.2 373.9 (7,815.6) (364.6) (7.805.1) 5.7 (7,799.4) 29,374.5 $ 1.2 41.1 (5,771.2) (503.3) (6.232.2) 1.2 (6.231.0) 19,219.6 $ 2020 2019 2018 924.7 3,594.6 S 4,518.0 1,503.2 (25.8) (280.7) 227.7 1,449.3 (1,495.4) (250.6) 216.8 1,305.9 714.9 (242.8) 226.8 (1,376.4) (499.2) 250.3 37.6 248.6 (622.8) 308.0 10.5 1,197.6 454.4 24.5 142.6 45.3 75.6 13.4 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 of joint venture Net gain resulting from divestiture of certain retail operations Stock-based compensation Goodwill impairments Non-cash lease cost Loss on retirement and impairment of assets Other Cash provided by/(used in) changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Income taxes payable Accounts payable Deferred revenue Operating lease 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 the divestiture of certain operations (2.7) (10.9) (317.5) (1,214.6) (210.8) 31.0 (1,231.4) 280.5 1,597.8 (197.7) (173.0) 922.0 1.237.1 31.9 (30.5) 131.0 (41.2) (839.5) 146.0 391.6 7.109.4 (141.1) 5,047.0 16.4 11,937.8 (443.9) 186,7 73.7 (190.4) 298.3 59.8 (191.9) 459.0 45.3 (1,311.3) (1,976.4) 608.2 5.6 (2,361.5) (1,483.6) Other (1,806.6) 684.3 (56.2) (1,010.8) (44.4) (1,711.5) 1,406.6 (967.7) 4,727.6 5.584.1 Net cash used in investing activities FINANCING ACTIVITIES: Proceeds from issuance of short-term debt Repayments of short-term debt Proceeds from issuance of long-term debt Repayments of long-term debt Proceeds from issuance of common stock Cash dividends paid Repurchase of common stock Minimum tax withholdings on share-based awards Other Net cash provided by/(used in) 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 298.8 (1,923.5) (1,698.9) (91.9) (37.7) 1,713.3 64.7 1.664.3 1,996.0 (350.0) 409.8 (1,761.3) (10,222.3) (111.6) (17.5) (10,056.9) (49.0) (6,069.7) 153.9 (1.743.4) (7.133.5) (62.7) (41.2) (3.242.8) (39.5 6,294.0 2.686.6 4,350.9 $ 8,75 2,686.6 S 2,462.3 8.756.3 396.9 $ 1.699.1 299.5 S 470.1 137.1 1.176.9 Income taxes Corporate Life Cycle Problem: Instructions: 1: Enter the Net cash provided (used) for each business activity" from a public company's Statement of Cash Flows in 2020. Use the same company financial statements from your Ch7 case study assignment. 2: Identify the likely phase in the company's corporate life cycle. Net cash Net cash Net cash provided (Used) provided (Used) provided (Used) by Operating by Investing by Financing Company (2020 Annual Report) Net Income Activities Activities Activities Likely Phase in the Company's Corporate Life Cycle Starbucks 2. Instructions for Posting (200 to 300 words - 60pts): a. Provide an explanation for a company's Growth Phase: 1- Describe a company's likely cash from operations in the growth phase. 2- Describe two different ways a company will likely make up for a cash dificiency when in the growth phase. 2020 2019 4.350.9 $ 2.686.6 70.5 879.2 1,529.4 281.2 883.4 1.551.4 231.4 739 5 13 7.8064 .600.4 206,1 200. 478 478.7 6,241.4 8,134.1 1,789.9 568.6 552.1 488.2 5,653.9 220.0 396.0 6,431.7 1,765.8 479.6 781.8 3.490,8 19.219.6 3,597.2 29.374.5 $ s 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 g-term investments Equity investments Property, plant and equipment, net Operating lease, right-of-use asset Deferred income taxes, net Other long-term assets Other intangible assets Goodwill TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) Current liabilities: Accounts payable Accrued liabilities Accrued payroll and benefits Income taxes payable Current portion of operating lease liability Stored value card liability and current portion of deferred revenue Short-term debt Current portion of long-term debt Total current liabilities Long-term debt Operating lease liability Deferred revenue Other long-term liabilities Total liabilities Shareholders' deficit: His dem Common stock ($0.001 par value) - authorized, 2,400.0 shares, issued and outstanding, 1,173.3 and 1.184.6 shares, respectively Additional paid-in capital Retained deficit Accumulated other comprehensive loss Total shareholders' deficit Noncontrolling interests Total deficit TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) 1.189.7 1,753.7 664.6 1.291.7 1.269.0 997.9 1,160.7 696,0 98.2 1.248,8 1.456.5 438.8 720.0 1.249.9 7.346,8 14,659.6 7,661.7 6,598,5 907.3 37,173.9 6,168.7 11.167.0 6,744.4 1.370.5 25,450.6 1.2 373.9 (7,815.6) (364.6) (7.805.1) 5.7 (7,799.4) 29,374.5 $ 1.2 41.1 (5,771.2) (503.3) (6.232.2) 1.2 (6.231.0) 19,219.6 $ 2020 2019 2018 924.7 3,594.6 S 4,518.0 1,503.2 (25.8) (280.7) 227.7 1,449.3 (1,495.4) (250.6) 216.8 1,305.9 714.9 (242.8) 226.8 (1,376.4) (499.2) 250.3 37.6 248.6 (622.8) 308.0 10.5 1,197.6 454.4 24.5 142.6 45.3 75.6 13.4 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 of joint venture Net gain resulting from divestiture of certain retail operations Stock-based compensation Goodwill impairments Non-cash lease cost Loss on retirement and impairment of assets Other Cash provided by/(used in) changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Income taxes payable Accounts payable Deferred revenue Operating lease 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 the divestiture of certain operations (2.7) (10.9) (317.5) (1,214.6) (210.8) 31.0 (1,231.4) 280.5 1,597.8 (197.7) (173.0) 922.0 1.237.1 31.9 (30.5) 131.0 (41.2) (839.5) 146.0 391.6 7.109.4 (141.1) 5,047.0 16.4 11,937.8 (443.9) 186,7 73.7 (190.4) 298.3 59.8 (191.9) 459.0 45.3 (1,311.3) (1,976.4) 608.2 5.6 (2,361.5) (1,483.6) Other (1,806.6) 684.3 (56.2) (1,010.8) (44.4) (1,711.5) 1,406.6 (967.7) 4,727.6 5.584.1 Net cash used in investing activities FINANCING ACTIVITIES: Proceeds from issuance of short-term debt Repayments of short-term debt Proceeds from issuance of long-term debt Repayments of long-term debt Proceeds from issuance of common stock Cash dividends paid Repurchase of common stock Minimum tax withholdings on share-based awards Other Net cash provided by/(used in) 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 298.8 (1,923.5) (1,698.9) (91.9) (37.7) 1,713.3 64.7 1.664.3 1,996.0 (350.0) 409.8 (1,761.3) (10,222.3) (111.6) (17.5) (10,056.9) (49.0) (6,069.7) 153.9 (1.743.4) (7.133.5) (62.7) (41.2) (3.242.8) (39.5 6,294.0 2.686.6 4,350.9 $ 8,75 2,686.6 S 2,462.3 8.756.3 396.9 $ 1.699.1 299.5 S 470.1 137.1 1.176.9 Income taxes