Purchase Solution

Cash Flow Statement for Starbucks

Not what you're looking for?

Ask Custom Question

I need assistance understanding the cash flow statements for Starbucks for 2008. Below is the actual question I need answered.

"Review Starbuck's statements of cash flow and foot notes and explain how each current account has affected cash management strategies."

Here is a link to SBUX financials 2008:
http://www.marketwatch.com/investing/stock/SBUX/financials/cash-flow

Any help is appreciated

Purchase this Solution
Solution Summary

Cash flow statement analysis is very important to gauge the performance of any company. Cash flow statement shows which are the key areas where the company has generated cash from and what areas the company have utilized cash. In case of Starbucks the amount of cash and cash equivalents have shown a declining trend in the last three years.
See the attached file for the detailed analysis.

Solution Preview

Cash flow statement analysis is very important to gauge the performance of any company. Cash flow statement shows which are the key areas where the company has generated cash from and what areas the company have utilized cash. In case of Starbucks the amount of cash and cash equivalents have shown a declining trend in the last three years. Cash balance have reduced from $312.61 million in 2006 to $281.26 in 2007 and then finally to $269.80 in the current year. Operating ...

Solution provided by:
Sonia Agarwal, CA
Education
  • Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
  • Bachelor of Commerce, West Bengal University
Recent Feedback
  • "I got this feedback and I wanted to know if you can explain it to me. I noticed something within your workings which I believe is incorrect.  It looks like you've mistaken the Debt ratio for the Equity Multiplier.  You've done a calculation to determine Return on Equity (ROE) but if you take a look at the ratios provided for us you'll see ROE listed on the bottom line already.  You can use ROE, Profit Margin and Total Asset Turnover to figure out the Equity Multiplier amount.  Equity multiplier is not provided for us and we need to calculate it.  I really hope this is helpful to you.  "
  • "Very attentive to detail. Answers are designed in easy to understand format."
  • "Fast response and thorough answer"
  • "thank you very much! "
  • "thank you so much !!!!!!!"
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Basics of corporate finance

These questions will test you on your knowledge of finance.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Teabucks Teashop: Compute an evaluation for an IPO; number of shares and price

    750*2=1,500 is Price/Sales 85*20=1,700 is Price/Cash Flow Starbucks 52*40=2,080 is P/E 750*3.75=2,813 is Price/Sales 85*28=2,380 is Price/Cash Flow Here's the scenario if it helps.

  • Strong Correlation of Earnings at Starbucks

    2.Does Starbucks have very much long-term debt? what are the chief ways Starbucks has financed assets? 3. Looking @ statement of cash flows, what factors can explain the change in the company's cash position over the last couple of years? 4.

  • This post addresses 10-11 Eat at My Restaurant.

    470653 Case Study questions on cash flow of several companies See attached document for case study data needed for the two questions below: b) Comment on the data reviewed for each firm. Need to see at least 4 points on each company.

  • Using Initial Public Offering

    The data for the valuation is as follows: Valuation using P/E, Price/Sales, and Price/Cash Flow Ratio: Teabucks Income statement (in $Million and rounded to nearest million) Total Revenue 750 Costs of goods sold 575 Gross profit

  • Strategic Plan

    The weakness of this option is that Starbucks would have to pay the owners of this chain in cash and there could be a strain on the cash flow of Starbucks (2). The second option for expanding global operations is grant franchises.

  • INTEGRATIVE CASE 7.1 Starbucks Case

    How is income affected when Starbucks actually spends cash to return a leased property to its original condition? If Starbucks spends more cash than reflected in the ARO liability, how will it account for the difference? c.

  • Internal Evaluation: Strength and Weaknesses

    Repeat business has also lead to a steady flow of income for the company. Stock prices continued to rise and both net income and sale have reached an all time high.

  • Calculate Starbuckes P/CF (Price to Cash Flow Ratio) and cash flow for 2009, 2010, 2011

    s=SBUX&a=05&b=26&c=1992&d=06&e=19&f=2012&g=d&z=66&y=330 In this solution we calculate Starbucks price to cash flow ratio and cash flow for 2009, 2010, and 2011.

  • Starbucks Marketing and Profitability

    Pros: Cash flow will increase by not having as much rent exposure each month. Con: Landlords will be hesitant to lease space to Starbucks for fear of them not fulfilling lease obligations.

View More Related Solutions