Balance sheets for Dunkin Donuts and Starbucks Income Statements Cash Flow Make financial statement analysis by calculating and comparing the following ratios of the two companies Question #1: Asset...

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Balance sheets for Dunkin Donuts and Starbucks Income Statements Cash Flow Make financial statement analysis by calculating and comparing the following ratios of the two companies Question #1: Asset Management Ratios of Starbucks and Dunkin Donuts? Question #2: After reviewing everything. Which company would you Prefer to Invest in?
Answered Same DayMay 02, 2021

Answer To: Balance sheets for Dunkin Donuts and Starbucks Income Statements Cash Flow Make financial statement...

Ashish answered on May 06 2021
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Make financial statement analysis by calculating and comparing the following ratios of the two companies.
Question #1: Asset Management Ratios of Starbucks and Dunkin Donuts?
Solution-
Starbucks Assets Management Ratio Analysis for the year 2018:
Inventory turnover = Cost of goods sold / Average Inventory
Inventory turnover = $10,174,500 / (($1,400,500 + $1,364,000) /2)
Inventory turnover = 7.36 times
Days Inventory Outstanding (DIO) = 365 days / Inventory turnover
Days Inventory Outstanding (DIO) = 365 days / 7.36
Days Inventory Outstanding (DIO) = 50 days
Receivables turnover ratio = Net receivable sales/ Average accounts receivables
Receivables turnover ratio = $24,719,500 / (($693,100 + $870,400) /2)
Receivables turnover ratio = 31.62 times
Days Sales Outstanding (DSO) = 365 days / Receivables turnover ratio
Days Sales Outstanding (DSO) = 365 days / 31.62
Days Sales Outstanding (DSO) = 12 days
Fixed Asset Turnover Ratio = Sales Revenue / Total Fixed...
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