Working Capital and Current RatioThe following data (in thousands) were taken from recent financial statements of Starbucks Corporation:Year 2Year 1Current assets$92,288$67,151Current liabilities25,70719,023a. Compute the working capital and the current ratio for Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratianswers to two decimal places.Year 2Year 1Working capital$4Current ratiob. What conclusions concerning the company's ability to meet its financial obligations can you draw from part (a)?Starbucks' working capitalv from Year 1 to Year 2 by SStarbucks's current ratiov in Year 2. Thechanges in working capital and current ratio indicate that short-term creditorsv concerned about receiving payment from Starbucks.PreviousNext1:01 PM0へ@血吧后4)12/11/2020a2.%24

Working capital is the amount left over after deducting current liabilities from current assets.…

Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Starbucks Corporation: Year 2 Year 1 Current assets $92,288 $67,151 Current liabilities 25,707 19,023 a. Compute the working capital and the current ratio for Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current rat answers to two decimal places. Year 2 Year 1 Working capital Current ratio b. What conclusions concerning the company's ability to meet its financial obligations can you draw from part (a)? Starbucks' working capital from Year 1 to Year 2 by $ Starbucks's current ratio v in Year 2. The changes in working capital and current ratio indicate that short-term creditors v concerned about receiving payment from Starbucks.

Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Starbucks Corporation: Year 2 Year 1 Current assets $92,288 $67,151 Current liabilities 25,707 19,023 a. Compute the working capital and the current ratio for Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current rat answers to two decimal places. Year 2 Year 1 Working capital Current ratio b. What conclusions concerning the company's ability to meet its financial obligations can you draw from part (a)? Starbucks' working capital from Year 1 to Year 2 by $ Starbucks's current ratio v in Year 2. The changes in working capital and current ratio indicate that short-term creditors v concerned about receiving payment from Starbucks.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter2: Analyzing Transactions

Section: Chapter Questions

Problem 24E: The following data (in millions) were taken from the financial statements of Costco Wholesale...

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Return on assets The financial statements of The Hershey Company (HSY) are shown in Exhibits 6 through 9 of this chapter. Based upon these statements, answer the following questions. Hershey had total assets of $4,412 (million) at the beginning of the year. Compute the return on assets for Hershey for the year shown in Exhibits 6-9.
The following data (in millions) were taken from the financial statements of Costco Wholesale Corporation: a. For Costco, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: 1. Revenue 2. Operating expenses 3. Operating income b. Comment on the results of your horizontal analysis in part (a). c. Based upon Exercise 2-23, compare and comment on the operating results of Target and Costco for the recent year.
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Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): Using your answers to MBA 1-3, compare the markup percentages and return on assets for Hershey and Tootle Roll.
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a Current fiscal year income from continuing operations, 11,9% of revenues Vertical analysis of income statement The following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of Speedway Motors ports, Inc. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. Current Year Previous Year Revenues: Admissions 90,639 100,694 Event related revenue 136,900 146,980 NASCAR broadcasting revenue 224,227 217,469 Other operating revenue 60,390 31,320 Total revenues 512,156 496,463 Expenses and other: Direct expense of events (102,786) (104,303) NASCAR event management fees (137,727) (133,682) Other direct expenses (43,764) (19,541) General and administrative (166,663) (288,166) Total expenses and other (450,960) (542392) Income from continuing operations 61,196 (46,229) a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Round percentages to one decimal place. b. Comment on the significant changes