Question
Predicting net income. Below are abbreviated income statements forStarbucks. The year ending September 30, 2013, included a large nonrecurring loss of $2,784 (million). Redo the
Predicting net income. Below are abbreviated income statements forStarbucks. The year ending September 30, 2013, included a large nonrecurring loss of $2,784 (million). Redo the 2013income statement removing this nonrecurring loss from the SG&A + Other category and recalculating the taxes at 37% (removing the tax credit). With this new proforma income statement for 2013, predict the net income for the periodending September 30, 2014, by determining the growth rates of sales,COGS, SG&A, and interest expense. Use a tax rate of 37%. Then look upthe numbers for Starbucks for 2014 and see how you did.
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