Solve the problem

The question is attached.

Created by EDGAR Online, Inc.
STARBUCKS CORP
BALANCE_SHEET
Form Type: 10-K
STARBUCKS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
Sep 29,
2019
ASSETS
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Inventories
Prepaid expenses and other current assets
Total current assets
Long-term investments
Equity investments
Property, plant and equipment, net
Deferred income taxes, net
Other long-term assets
Other intangible assets
Goodwill
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT)
Current liabilities:
Accounts payable
Accrued liabilities
Accrued payroll and benefits
Income taxes payable
Stored value card liability and current portion of
deferred revenue
Current portion of long-term debt
Total current liabilities
Long-term debt
Deferred revenue
Other long-term liabilities
Total liabilities
Shareholders’ equity/(deficit):
Common stock ($0.001 par value) – authorized,
2,400.0 shares; issued and outstanding, 1,184.6 and
1,309.1 shares, respectively
Additional paid-in capital
Retained earnings/(deficit)
Accumulated other comprehensive loss
Total shareholders’ equity/(deficit)
Noncontrolling interests
Total equity/(deficit)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT)
$
$
$
2,686.60
70.50
879.20
1,529.40
488.20
5,653.90
220.00
396.00
6,431.70
1,765.80
479.60
781.80
3,490.80
19,219.60
1,189.70
1,753.70
664.60
1,291.70
1,269.00
6,168.70
11,167.00
6,744.40
1,370.50
25,450.60
$
1.20
41.10
(5,771.20)
(503.30)
(6,232.20)
1.20
(6,231.00)
19,219.60
Sep 30,
2018
$
$
$
8,756.30
181.50
693.10
1,400.50
1,462.80
12,494.20
267.70
334.70
5,929.10
134.70
412.20
1,042.20
3,541.60
24,156.40
1,179.30
1,752.50
656.80
102.80
1,642.90
349.90
5,684.20
9,090.20
6,775.70
1,430.50
22,980.60
$
1.30
41.10
1,457.40
(330.30)
1,169.50
6.30
1,175.80
24,156.40
Created by EDGAR Online, Inc.
STARBUCKS CORP
BALANCE_SHEET
Form Type: 10-K
STARBUCKS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
Sep 30,
Oct 1,
2018
ASSETS
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Inventories
Prepaid expenses and other current assets
Total current assets
Long-term investments
Equity and cost investments
Property, plant and equipment, net
Deferred income taxes, net
Other long-term assets
Other intangible assets
Goodwill
TOTAL ASSETS
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
Accrued liabilities
Insurance reserves
Stored value card liability and current portion of
deferred revenue
Current portion of long-term debt
Total current liabilities
Long-term debt
Deferred revenue
Other long-term liabilities
Total liabilities
Shareholders’ equity:
Common stock ($0.001 par value) – authorized,
2,400.0 shares; issued and outstanding, 1,309.1 and
1,431.6 shares, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total shareholders’ equity
Noncontrolling interests
Total equity
TOTAL LIABILITIES AND EQUITY
$
$
$
$
2017
8,756.30
181.50
693.10
1,400.50
1,462.80
12,494.20
267.70
334.70
5,929.10
134.70
412.20
1,042.20
3,541.60
24,156.40
$
1,179.30
2,298.40
213.70
$
$
2,462.30
228.60
870.40
1,364.00
358.10
5,283.40
542.30
481.60
4,919.50
795.40
362.80
441.40
1,539.20
14,365.60
782.50
1,934.50
215.20
1,642.90
349.90
5,684.20
9,090.20
6,775.70
1,430.50
22,980.60
1,288.50
4,220.70
3,932.60
4.40
750.90
8,908.60
1.30
41.10
1,457.40
(330.30)
1,169.50
6.30
1,175.80
24,156.40 $
1.40
41.10
5,563.20
(155.60)
5,450.10
6.90
5,457.00
14,365.60
Created by EDGAR Online, Inc.
STARBUCKS CORP
INCOME_STATEMENT
Form Type: 10-K
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(in millions, except per share data)
Sep 29,
Fiscal Year Ended
Net revenues:
Company-operated stores
Licensed stores
Other
Total net revenues
Cost of sales
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/(loss) attributable to
noncontrolling interests
Net earnings attributable to Starbucks
Earnings per share – basic
Earnings per share – diluted
Weighted average shares outstanding:
Basic
Diluted
Sep 30,
2019
$
$
$
$
21,544.40
2,875.00
2,089.20
26,508.60
8,526.90
10,493.60
371.00
1,377.30
1,824.10
135.80
22,728.70
298.00
4,077.90
2018
$
19,690.30
2,652.20
2,377.00
24,719.50
7,930.70
9,472.20
554.90
1,247.00
1,708.20
224.40
21,137.40
301.20
3,883.30
–
1,376.40
622.80
96.50
(331.00)
4,466.20
871.60
499.20
191.40
(170.30)
5,780.00
1,262.00
3,594.60
4,518.00
(4.60)
3,599.20 $
2.95 $
2.92 $
(0.30)
4,518.30
3.27
3.24
1,221.20
1,233.20
1,382.70
1,394.60
Oct 1,
2017
$
17,650.70
2,355.00
2,381.10
22,386.80
7,065.80
8,486.40
518.00
1,011.40
1,408.40
153.50
18,643.50
391.40
4,134.70
93.50
181.80
(92.50)
4,317.50
1,432.60
2,884.90
$
$
$
0.20
2,884.70
1.99
1.97
1,449.50
1,461.50
Created by EDGAR Online, Inc.
STARBUCKS CORP
CASH_FLOW
Form Type: 10-K
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Sep 29,
Fiscal Year Ended
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
Stock-based compensation
Goodwill impairments
Other
Cash provided by changes in operating
assets and liabilities:
Accounts receivable
Inventories
Prepaid expenses and other current assets
Income taxes payable
Accounts payable
Deferred revenue
Other operating assets and liabilities
Net cash provided by operating activities
INVESTING ACTIVITIES:
Purchases of investments
Sales of investments
Maturities and calls of investments
Acquisitions, net of cash acquired
Additions to property, plant and equipment
Net proceeds from the divestiture of
certain operations
Other
Net cash used by investing activities
FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt
Repayments of long-term debt
Proceeds from issuance of common stock
Cash dividends paid
Repurchase of common stock
Minimum tax withholdings on share-based
2019
3,594.60
1,449.30
(1,495.40)
(250.60)
216.80
(622.80)
308.00
10.50
187.90
(197.70)
(173.00)
922.00
1,237.10
31.90
(30.50)
(141.10)
5,047.00
(190.40)
298.30
59.80
(1,806.60)
684.30
(56.20)
(1,010.80)
1,996.00
(350.00)
409.80
(1,761.30)
(10,222.30)
awards
Other
Net cash used by financing activities
Effect of exchange rate changes on cash
and cash equivalents
Net increase/(decrease) in cash and cash
equivalents
CASH AND CASH EQUIVALENTS:
Beginning of period
End of period
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest, net of capitalized interest
Income taxes, net of refunds
(111.60)
(17.50)
(10,056.90)
(49.00)
(6,069.70)
$
8,756.30
2,686.60
$
$
299.50
470.10
Sep 30,
Oct 1,
2018
$
4,518.00
2017
$
2,884.90
1,305.90
714.90
(242.80)
1,067.10
95.10
(310.20)
226.80
186.60
(1,376.40)
–
(499.20)
250.30
37.60
89.00
(93.50)
176.00
87.20
68.90
131.00
(41.20)
(839.50)
146.00
391.60
7,109.40
16.40
11,937.80
(96.80)
14.00
(20.00)
(91.90)
46.40
130.80
107.20
4,251.80
(191.90)
459.00
45.30
(1,311.30)
(1,976.40)
(674.40)
1,054.50
149.60
(1,519.40)
608.20
5.60
(2,361.50)
85.40
54.30
(850.00)
5,584.10
153.90
(1,743.40)
(7,133.50)
750.20
(400.00)
150.80
(1,450.40)
(2,042.50)
(62.70)
(41.20)
(3,242.80)
(82.80)
(4.40)
(3,079.10)
(39.50)
10.80
6,294.00
333.50
$
2,462.30
8,756.30
$
2,128.80
2,462.30
$
$
137.10
1,176.90
$
$
96.60
1,389.10
Information on the Allowance for Doubtful Accounts, Bad Debt Expenses and Write-Offs
Let’s assume that Starbucks discloses the following table in its annual reports:
Allowance for dountful accounts (in
$ millions)
Balance at Beginning of Fiscal Charged to Costs and Expenses
Year
(i.e., bad debt expenses)
For the fiscal years ended:
September 29, 2019
September 30, 2018
October 1, 2017
8.0
9.8
9.4
2.5
2.7
2.1
Deductions (i.e., write-offs)
Balance at End of Fiscal Year
3.8
4.1
1.7
6.7
8.0
9.8
Information on the Allowance for Doubtful Accounts, Bad Debt Expenses and Write-Offs
Let’s assume that Starbucks discloses the following table in its annual reports:
Allowance for dountful accounts (in
$ millions)
Balance at Beginning of Fiscal Charged to Costs and Expenses
Year
(i.e., bad debt expenses)
For the fiscal years ended:
December 31, 2019
December 31, 2018
December 31, 2017
33.0
43.0
48.0
2.5
2.7
2.3
Deductions (i.e., write-offs)
Balance at End of Fiscal Year
14.5
12.7
7.3
21.0
33.0
43.0