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.chart shown (attached) then questions:(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 = % Selected Financial Data (In millions, except earnings per share)Sept. 27,2009Sept. 28,2008(52 wks) (52 wks) (52 wks)Sept. 30,2007Oct. 1,Oct. 2,2005As of and for the fiscal year ended2006(52 wks)(52 wks)Results of OperationsNet revenues:Company-operated retailSpecialty:$8,100.1$8,681.9$7,918.3$6,483.1$5,311.9Licensing1,222.31,171.61,026.3860.6673.0Food service and other372.2439.5386.9343.2304.4Total specialty1,594.51,611.11,413.21,203.8977.4Total net revenues$9,694.6$10,293.0$9,331.5$7,686.9$6,289.3Operating incomeEarnings before cumulative effectof change in accounting principle$562.0$503.9$1,053.9$894.0$780.5460.8435.5752.6691.5614.4Cumulative effect of accountingchange for asset retirementobligations, net of taxes17.2Net earnings$460.8$435.5$752.6$674.3$614.4Earnings per common sharebefore cumulative effect ofchange in accounting principle-diluted ("EPS")$0.52$0.43$0.87$0.73$0.61Cumulative effect of accountingchange for asset retirementobligations, net of taxes-percommon share0.02EPS-diluted$0.52$0.43$0.87$0.71$0.61Net cash provided by operatingactivities$1,389.0$1,258.7$1,331.2$1,131.6$922.9Capital expenditures (additions toproperty, plant and equipment)$643.3$445.6$984.5$1,080.3$771.2Balance SheetTotal assets$5,696.8$5,752.6$5,423.9$4,498.9$3,593.7Short-term borrowingsLong-term debt (including currentportion)713.0710.3700.0277.0549.5550.3550.92.73.6Shareholders' equity$2,935.7$2,400.9$2,184.1$2,148.5$2,020.3

Asset turnover ratio = Total revenue/Average assets Profit margin ratio = Net income/total revenue…

Answered: Suppose the years 2005 to 2009 were a…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter5: Risk Analysis

Section: Chapter Questions

Problem 1AIC: Compute the values of each of the ratios in Exhibit 5.27 for Starbucks for 2012. Starbucks had 749.3...

See similar textbooks

Related questions

Question

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.

chart shown (attached) then questions:

(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 = %

Selected Financial Data (In millions, except earnings per share)
Sept. 27,
2009
Sept. 28,
2008
(52 wks) (52 wks) (52 wks)
Sept. 30,
2007
Oct. 1,
Oct. 2,
2005
As of and for the fiscal year ended
2006
(52 wks)
(52 wks)
Results of Operations
Net revenues:
Company-operated retail
Specialty:
$8,100.1
$8,681.9
$7,918.3
$6,483.1
$5,311.9
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
$9,694.6
$10,293.0
$9,331.5
$7,686.9
$6,289.3
Operating income
Earnings before cumulative effect
of change in accounting principle
$562.0
$503.9
$1,053.9
$894.0
$780.5
460.8
435.5
752.6
691.5
614.4
Cumulative effect of accounting
change for asset retirement
obligations, net of taxes
17.2
Net earnings
$460.8
$435.5
$752.6
$674.3
$614.4
Earnings per common share
before cumulative effect of
change in accounting principle-
diluted ("EPS")
$0.52
$0.43
$0.87
$0.73
$0.61
Cumulative effect of accounting
change for asset retirement
obligations, net of taxes-per
common share
0.02
EPS-diluted
$0.52
$0.43
$0.87
$0.71
$0.61
Net cash provided by operating
activities
$1,389.0
$1,258.7
$1,331.2
$1,131.6
$922.9
Capital expenditures (additions to
property, plant and equipment)
$643.3
$445.6
$984.5
$1,080.3
$771.2
Balance Sheet
Total assets
$5,696.8
$5,752.6
$5,423.9
$4,498.9
$3,593.7
Short-term borrowings
Long-term debt (including current
portion)
713.0
710.3
700.0
277.0
549.5
550.3
550.9
2.7
3.6
Shareholders' equity
$2,935.7
$2,400.9
$2,184.1
$2,148.5
$2,020.3

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions