Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose the years 2005 to 2009 were a period of rapid growth for a certain chain of coffeehouses and the company's revenues grew by

image text in transcribedimage text in transcribed

Suppose the years 2005 to 2009 were a period of rapid growth for a certain chain of coffeehouses and the company's revenues grew by more than 50% during that period. Use the hypothetical financial data for the company to answer the questions. Selected Financial Data (In millions, except earnings per share) As of and for the fiscal year ended Sept. 27, 2009 (52 wks) Sept. 28, 2008 (52 wks) Sept. 30, 2007 (52 wks) Oct. 1, Oct. 2, 2006 (52 wks) 2005 (52 wks) Results of Operations Net revenues: Company-operated retail $8,050.1 $8,641.9 $6,453.1 $5,301.9 Specialty: Licensing 1,222.3 1,171.6 1,026.3 860.6 673.0 Food service and other 372.2 439.5 386.9 343.2 304.4 Total specialty 1,594.5 1,611.1 1,413.2 1,203.8 977.4 Total net revenues $9,644.6 $10,253.0 $9.301.5 $7,656.9 $6,279.3 Operating income $562.0 $503.9 $1,0539 $894.0 $780.5 Earnings before cumulative effect of 460.5 395.5 802.6 671.5 624.4 change in accounting principle Cumulative effect of accounting change for asset retirement obligations, net of taxes Net earnings Earnings per common share before cumulative effect of change in 17.2 $460. $395.5 $802.6 $554.3 $624.4 $0.52 50.43 $0.87 $0.73 $0.61 accounting principle-diluted ("EPS") Cumulative effect of accounting change for asset retirement obligations, net of 0.02 taxes-per common share EPS-diluted $0.52 $0.43 $0.87 $0.71 $0.61 Net cash provided by operating $1.389.0 $1,258.7 $1,331.2 $1,131.6 $922.9 activities Capital expenditures (additions to $445.6 $9845 $1,080.3 $771.2 $643.3 property, plant and equipment) Balance Sheet Total assets $5,656.8 Short-term borrowings $5,772.6 713.0 $5,463.9 710.3 Long-term debt (including current portion) 549.5 550.3 550.9 54,548.9 700.0 2.7 $3,593.7 277.0 3.6 Shareholders' equity $2,915.7 $2,400.9 $2,194.1 $2,118.5 $1.980.3 (a) Calculate the asset turnover ratio for 2008 and 2009. (Round your answers to two decimal places.) 2008 2009 (b) Calculate the net profit margin (as a %) for 2007, 2008, and 2009. (Round your answers to the nearest tenth of a percent.) 2007 2008 2009 (c) Calculate the return on investment (as a %) for 2007, 2008, and 2009. (Round your answers to the nearest tenth of a percent.) 2007 2008 2009 (d) Prepare a trend analysis of the net revenue and total assets for 2005 through 2009. (Round your answers to one decimal place.) 2009 2008 2007 2006 2005 Total net revenue Operating income Earnings before cumulative effect of change in accounting principle Cumulative effect of accounting change for asset retirement obligations, net of Earnings per common share before cumulative effect of change in accounting principle-diluted ("EPS") Cumulative effect of accounting change for asset retirement obligations, net of taxes-per common share EPS-diluted Net cash provided by operating Capital expenditures (additions to property, plant and equipment) Balance Sheet Total assets Short-term borrowings Long-term debt (including current portion) Shareholders' equity B $10,251.8 10,301.5 $7,636.9 162793 $542:0 5039 $1.053.9 $896.0 170.5 3055 802.6 6715 6244 17.2 $395.5 3902.6 $654.3 56344 1043 $0.87 30.73 $0.01 0.02 10.12 10.87 10.71 10.63 $1.258.7 41.331.2 $1,1314 0229 STILE $1,000.3 67712 5543.3 $5.772.6 15.463.9 54548.9 $3.593.7 700.0 2770 3455 629157 550.9 2.7 25 $2,400 $2.19 $2.1185 $1,03 (a) Calculate the asset turnover ratio for 2008 and 2009. (Round your answers to two decimal places.) 2008 2009 (b) Calculate the net profit margin (as a %) for 2007, 2008, and 2009. (Round your answers to the nearest tenth of a percent.) 2007 2000 2009 (c) Calculate the return on investment (as) for 2007, 2000, and 2009. (Round your answers to the nearest tenth of a percent) 2007 2008 2009 (d) Prepare a trend analysis of the net revenue and total assets for 2005 through 2009. (Round your answers to one decimal 2009 2008 2007 2006 2005 Net Revenue 100.0 Total Assets (e) Extra credit: Prepare a trend analysis multiple-line chart for the mining (d) 200- Index Number Net Revenue 180- Tutal Assets 160- 140- 120- 100-

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting an introduction to concepts, methods and uses

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

13th Edition

978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003

More Books

Students also viewed these Accounting questions

Question

What is search engine optimization? Who benefits from it?

Answered: 1 week ago