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Section C: Case Analysis Please answer the following questions, using the exhibit below and the material covered in the case discussion. This section is worth

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Section C: Case Analysis Please answer the following questions, using the exhibit below and the material covered in the case discussion. This section is worth 30 points. Question 1 (30 points) Listen 1. Using the data in the exhibit below, please calculate the following ratios for Starbucks in the second quarter ending 6/27/2021 versus 6/28/2020. Has performance recovered from the pandemic? Show the ratio numbers for each metric in the space provided below. (20 points) (a) Gross profit margin in Q2-2021 versus Q2-2020 (b) Operating profit margin in Q2-2021 versus Q2-2020 () Net profit margin in Q2-2021 versus Q2-2020 (d) Current ratio in Q2-2021 versus Q2-2020 (e) Times-interest-earned tie, interest coverage) in Q2-2021 versus Q2-2020 12. Based on your financial analysis and our case discussion, what initiative(s) would you recommend Starbucks implements please describe to points) VELULU (e) Times-interest earned (i.e. interest coverage) in Q2-2021 versus Q2-2020 2. Based on your financial analysis and our case discussion, what initiative(s) would you recommend Starbucks implement? Please describe. (10 points) Q2-2020 7,806.4 6,241.4 8.134.1 3,5972 3.595.4 29,374.5 Income Statement Q2-2021 Q2-2020 Balance Sheet Revenues Q2-2021 7,496.5 4,222.1 Current assets 7.931.7 Cost of Goods Sold 2.2060 1.484.0 PPE, Net 6,151.4 Gross profit 5.290.5 2.738.1 Operating lease 8,065.2 Operating expenses 3,038.3 2,671.4 Goodwill 3,672.0 Depreciation 354.3 361.0 Other assets 3.6563 General & admin 494.9 399.9 Total assets 29.476.8 Other operating, net 85.7 (9.7) Operating income (loss) 1,488.7 (7039) Current liabilities 7.799.8 Long Term Debt 13,6192 Interest expense 113.4 120.8 Operating lease obligations 7,597.8 Other, net 36.0 12.7 Other Liabilities 7.2543 1,411.3 Income (loss) before tax (812.0) Total Liabilities 36.271.1 Income tax (refund) 2571 1329 (678.1) 1,1542 (6.794.3) Shareholders Equity Net Income (loss) Note: Figures in S millions: Numbers in (parentheses) are negative values. 7.346.8 14,659.6 7,661.7 7.505.8 37,173.9 (7.799.4)

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