WMBA 507 (Starbucks is the company. ) Please also include the financial statements used to answer the questions. Thank you. I. Using the corporation that you have reviewed: A. Reconsider the Statement...

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WMBA 507 (Starbucks is the company. ) Please also include the financial statements used to answer the questions. Thank you. I. Using the corporation that you have reviewed: A. Reconsider the Statement of Cash Flow 1. Examine the latest fiscal year statement. Utilizing this statement, explain the choices that the company made for that year. 2. Examine the statement of cash flow for the previous year. Explain the choices that the company made. For each year: what activities added to cash ? What activities utilized cash? B. Reconsider fundamental analysis for this company Using fundamental analysis, review the crucial ratios in the following categories: Liquidity Asset management Debt Interest coverage Profitability Do an analysis of the important ratios in each category, Compare to the previous year. NOTES: 1. Be sure to include at least a summary of the pertinent financial statements as back-up to your analysis. These should include the Income statements, Balance sheets, and Statement of Cash Flow. 2. Show your ratio calculations (at least the set-up). Be aware of Annualizing income statement items where necessary. Part 2: Application. Answer all “problems”. In each case, SHOW YOUR WORK. 1. The fieldstone flooring company series A bonds have 5 years to maturity. Interest rate is paid annually; the bonds have a $1,000 par value; and the coupon rate is 9 %. a.What is the yield to maturity, at a current market price of $829? b.What is the yield to maturity at a market price of $1,104? c. What would you pay for a bond if you believed that appropriate yield is 12% 2) A bond dealer purchased the following bonds with a yield to maturity of 8%. Afterwards, yields fell to 7%. Complete the table below: Percentage Price @ 8% Price at 7% Change 10 year, 10% coupon 10 year Zero 5 year Zero 30 year Zero 3.Today you purchased a bond that matures in 5 years, with par value $1,000. The bond’s annual coupon is 8%; the current yield is 8.21%. What is it yield to maturity? 4. Bombs-Away bonds are currently selling at $1,200. Their face value is $1,000, coupon is 11%, and years left to maturity is 10. The bonds are callable in five years, at 109. a. What is the yield to maturity? b. What is the yield to call if they are called at first opportunity?
Answered Same DayFeb 28, 2021

Answer To: WMBA 507 (Starbucks is the company. ) Please also include the financial statements used to answer...

Tanmoy answered on Mar 23 2021
139 Votes
STARBUCKS CASH FLOW STATEMENT ANALYSIS
Cash Flow Statement Analysis
1. The Net income of Starbucks in 2019 was $ 3594.6 million compared to $ 4518 million. Hence, there was a decrease of 20.43% in 2019 compared to the pr
evious year.
2. The taxes have decreased considerably in 2019 compared to 2018 while the amount of depreciation and amortization has increased in 2019 compared to previous year. This was due to additional purchase of plant and equipment in the previous year the depreciation for which is considered in the present year 2019.
3. The Accounts receivable have decreased in 2019 compared to the previous year is due to repayment of by the debtors while the accounts payable has decreased due to payment to the creditors of Starbucks.
4. The cash from operating activities is $5.0 billion for 2019 compared to $11.9 billion in 2018 which is basically due to lapping of the prior year receipt of the up-front payment in the Q4 2018 by Nestle.
5. The purchase of investment has increased in 2019 from 2019 by $1.5 million due to additional investment made by Starbucks.
6. The sales of investment has decreased in 2019 compared to the previous years while the net proceeds from divestiture from certain operations have increased in 2019 compared to 2018.
7. There is a decrease in the additional purchase of plant, property and equipment in 2019 compared to 2018.
8. Cash from investing activities was $1.0 billion in 2019 compared to $2.4 billion in 2019. This decrease was due to prior year investment to acquire 50% ownership interest in East China joint venture and higher net proceeds from divestiture of certain operations.
9. Proceeds from long term debt have decreased in 2019 from 2018 due to repayment of debt.
10. Proceeds from common stock have increased due to issuance of additional shares by Starbucks to raise the capital in 2019 compared to 2018.
11. Cash from financing activities for 2019 was $10.1 billion compared to $3.2 billion in 2018. This increase was due to lower proceeds from issuance of long term debt and higher repurchase of common stock under accelerated share repurchase agreement in 2019.
12. The total cash balance at the end of 2019 decreased compared to 2018 by...
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