Part III: Cash Flows Statement of Starbucks Corporation Please find the Consolidated Statements of Earnings and the Consolidated Statements of Cash Flows for Starbucks Corporation below. Use the information contained in those financial statements to answer the following questions. 1. What was the net book value of the investments sold during fiscal year 2020? Assume that Starbucks recorded gains of $6 (million) on the sale of investments during the year. STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share data) Other Fiscal Year Ended Net revenues: Company-operated stores Licensed stores Total net revenues Product and distribution costs Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Restructuring and impairments Total operating expenses Income from equity investees Operating income Gain resulting from acquisition of joint venture Net gain resulting from divestiture of certain operations Interest income and other, net Interest expense Earnings before income taxes Income tax expense Net earnings including noncontrolling interests Net earnings attributable to Starbucks Earnings per share-basic Earnings per share-diluted Weighted average shares outstanding: Basic Diluted Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 $ 19,164.6 S 21,544.4 S 19,690.3 2,327.1 2,875.0 2,652.2 2,026,3 2,089.2 2,377.0 23,518.0 26,508.6 24,719.5 7,694.9 8,526.9 7,930.7 10,764.0 10,493.6 9,472.2 430.3 371.0 554.9 1,431.3 1,377.3 1,247.0 1,679.6 1,824.1 1,708.2 278.7 135.8 224.4 22.278.8 22,728.7 21,137,4 322.5 1,561.7 298.0 4,077.9 622.8 301.2 3,883.3 1,376.4 499.2 39.7 96.5 191.4 (437.0) (331.0) (170.3) 1,164.4 4,466.2 5,780.0 239.7 871.6 1,262.0 924.7 3,594.6 4,518.0 Net loss attributable to noncontrolling interests (3.6) (4.6) (0.3) $ 928.3 $ 3,599.2 $ 4,518.3 $ 0.79 $ 2.95 $ 3.27 $ 0.79 $ 2.92 $ 3.24 1,172.8 1,221.2 1,382.7 1,181.8 1,233.2 1,394.6 STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Fiscal Year Ended Sep 27, 2020 Sep 29, 2019 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 924.7 $ 3,594.6 $ Sep 30, 2018 4,518.0 1,503.2 1,449.3 (25.8) (1,495.4) (280.7) (250.6) 1,305.9 714.9 (242.8) 227.7 216.8 (622.8) 226.8 (1,376.4) (499.2) Stock-based compensation Goodwill impairments Non-cash lease cost Loss on retirement and impairment of assets Other 248.6 308.0 10.5 250.3 37.6 1,197.6 - 454.4 142.6 75.6 24.5 45.3 13.4 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 (2.7) (197.7) 131.0 (10.9) (173.0) (41.2) (317.5) 922.0 (839.5) (1,214.6) 1,237.1 146.0 (210.8) 31.9 391.6 Deferred revenue Operating lease liability Other operating assets and liabilities Net cash provided by operating activities INVESTING ACTIVITIES: Purchases of investments Sales of investments 31.0 (30.5) 7,109.4 (1,231.4) 280.5 (141.1) 16.4 1,597.8 5,047.0 11,937.8 (443.9) (190.4) (191.9) 186.7 298.3 459.0 Maturities and calls of investments 73.7 59.8 45.3 Acquisitions, net of cash acquired Additions to property, plant and equipment (1,483.6) (1,806.6) Net proceeds from the divestiture of certain operations 684.3 (1,311.3) (1,976.4) 608.2 Other (44.4) (56.2) 5.6 Net cash used in investing activities (1,711.5) (1,010.8) (2,361.5) FINANCING ACTIVITIES: Proceeds from issuance of short-term debt 1,406.6 Repayments of short-term debt (967.7) Proceeds from issuance of long-term debt 4,727.6 1,996.0 5,584.1 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 (350.0) 298.8 409.8 153.9 (1,923.5) (1,761.3) (1,743.4) (1,698.9) (10,222.3) (7,133.5) (91.9) (111.6) (62.7) (37.7) (17.5) (41.2) 1,713.3 (10,056.9) (3,242.8) 64.7 (49.0) (39.5) Net increase/(decrease) in cash and cash equivalents 1,664.3 (6,069.7) 6,294.0 CASH AND CASH EQUIVALENTS: Beginning of period 2,686.6 8,756.3 2,462.3 End of period 4,350.9 $ 2,686.6 $ 8,756.3 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest, net of capitalized interest Income taxes 396.9 $ 299.5 $ 1,699.1 $ 470.1 $ 137.1 1,176.9