Question
Predicting net income.Abbreviated income statements for Starbucks are in the popup window: Predict the net income for the period ending September 30, 2014, by determining
Predicting net income.Abbreviated income statements for Starbucks are in the popup window: Predict the net income for the period ending September 30, 2014, by determining the growth rates of sales, COGS, SG&A, and interest expense. Use a tax rate of 37%. Note: Enter all expenses as negative numbers.
(Hint: Use the compounded growth rate method to calculate all of the growth rates.)
Part 1
The sales growth is ____%. (Round to three decimal places.)
Part 2
The cost of goods sold growth is ___%.(Round to three decimal places.)
Part 3
The selling, general, and administrative expenses growth is ___%. (Round to three decimal places.)
Part 4
The interest expense growth is ___%. (Round to three decimal places.)
Part 5
The projected sales for 2014 is $___ million. (Round to the nearest million dollars.)
Part 6
The projected cost of goods sold for 2014 is $___million. (Round to the nearest million dollars.)
Part 7
The projected selling, general, and administrative expenses for 2014 is $___million. (Round to the nearest million dollars.)
Part 8
The projected interest expense for 2014 is $___million. (Round to the nearest million dollars.)
Complete the table below.Note: Use a minus sign for numbers to be subtracted.(Round to the nearest million dollars.)
Starbucks Abbreviated Income Statements for the Years Ending September 30, 2011-2014 Starbucks Abbreviated Income Statements for the Years Ending September 30, 2011-2014Step by Step Solution
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