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Details about a company's
Requirements
1. Which method does Star bucks use to report net cash flows from operating activities? How can you tell?
2. Starbucks earned net income during 2013. Did operations provide cash or use cash during 2013? Give the amount. How did operating cash during 2013 compare with 2012?
3. For the year ended September 29, 2013, did Starbucks pay cash dividends? If so, how much?
4. For the year ended September 29, 2013, did Starbucks use cash to purchase property, plant, and equipment? If so, how much?
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Chapter 14 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters, Student Value Edition (5th Edition)
- Analyzing Starbuckss Income Statement and Cash Flow Statement Disclosures Review Starbuckss financial statements and notes in Appendix A. Required: (Note: You do not need to make any calculations.) 1. Does the company use a multiple-step or a single-step format on its income statement? Explain. 2. What was the net earnings attributable to Starbucks for 2017? What was the basic earnings per common share for 2017? 3. What was the amount of the income taxes related to income before income taxes for 2017? 4. What was the amount of general and administrative expenses in 2017? 5. What amount of depreciation and amortization expense is reported separately on the income statement for 2017? How much depreciation and amortization expense is added back to net income on the 2017 statement of cash flows? What item on the income statement includes the majority of the difference? 6. What amount of dividends on common stock was paid and declared in 2017? If these amounts differ, where is the difference on the balance sheet? 7. Are Starbuckss revenues seasonal? If so, in which two quarters did Starbucks generate the most revenues in 2016 and 2017? 8. Did Starbucks use the direct or indirect method to determine the net cash provided by operating activities in 2017? What was the amount? 9. What was the net cash used in investing activities in 2017? 10. What cash was used for financing activities in 2017?arrow_forwardUse the following excerpts from Huckleberry Companys financial statements to determine cash paid to suppliers for inventory in 2018.arrow_forwardUse the following excerpts from Algona Companys financial statements to determine cash received from customers in 2018.arrow_forward
- A firm reports subscription fee revenue on the income statement of $200,000. Beginning and ending unearned subscription fee revenues on the balance sheet are $88,000 and $78,000, respectively. What is the amount of cash received from customers for fees? What dollar adjustment is needed in the operating section of the cash flow statement under the indirect method.arrow_forwardThe financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies’ complete annual reports, including the notes to the financial statements, are available online.Click here to view Appendix CClick here to view Appendix DUse the companies’ financial information to answer the following questions. (a) Your Answer Correct Answer Partially correct answer icon Your answer is partially correct. What method of computing net cash provided by operating activities does Coca-Cola use? What method does PepsiCo use? What were the amounts of cash provided by operating activities reported by Coca-Cola and PepsiCo in 2017? (Enter your answers in millions.) The Coca-Cola Company PepsiCo, Inc. Method of computing Net cash provided by operating activities $ $…arrow_forwardThe 2022 accounting records of Sheridan Transport provide the following information. Payment of interest Cash sales Receipt of dividend revenue Payment of income taxes Net income Payment for merchandise Payment for land Collection of accounts receivable Cash Flows from Operating Activities Cash receipts from Prepare the cash flows from operating activities section using the direct method. Dividend Revenue Less V cash payments: For Interest For Income Taxes To Suppliers for Merchandise For Salaries and Wages $10,800 50,900 19,000 For Operating Expenses 15,700 38,000 97,600 73,700 195,200 SHERIDAN Transport Statement of Cash Flows-Direct Method For the Year Ended December 31, 2022 Payment of salaries and wages Depreciation expense Proceeds from sale of vehicles Purchase of equipment for cash Loss on sale of vehicles Payment of dividends Payment of operating expenses V Net Cash Provided by Operating Activities 10,800 i $ $ $56,900 16.100 812,100 21,900 3,100 14,700 27,600 208,600 1arrow_forward
- compare Starbucks and Dunkin donuts cash flow from Operating activities with the net income of 2018, 2019, 2020 Starbucks: 2020. 2019 2018 basic EPS $0.79 $2.95 $3.27 diluted EPS 0.79 2.92 3.24 dunkin donuts: 2020 2019 2018 basic EPS $ 2.87 2.92 2.75 diluted EPS. 2.85. 2.89. 2.71 compare and result in facts of EPS for both the companies thank youarrow_forwardSuppose your company sells goods for $450, of which $275 is received in cash and $175 is on account. The goods cost your company $155 and were paid for in a previous period. Your company also recorded salaries and wages of $145, of which only $45 has been paid in cash. How would i answer the following questions?? Calculate the amount that should be reported as net cash flow from operating activities. Calculate the amount that should be reported as net income. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).arrow_forwardQUESTION REQUIRED Use the information provided below to prepare the Cash Flow Statement of Jonah Ltd for the year ended 31 December 2022. (Some of the figures have already been entered in the answer book.) INFORMATION The Statement of Comprehensive Income of Jonah Ltd for the year ended 31 December 2022 and Statement of Financial Position as at 31 December 2021 and 2022 are as follows: STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 Sales Cost of sales Gross profit Other operating income Gross income Distribution expenses Administrative expenses Earnings before interest and tax Interest income Interest expense Esmings before tax Company tax Earnings after interest and tax STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Non-current assets Land and buildings Plant and machinery Current assets Inventories Accounts receivable Total assets EQUITY AND LIABILITIES Equity Ordinary share capital Retained earnings Non-current liabilities Long-term borrowings…arrow_forward
- Using the financial statements and additional information below, prepare a cash flow statement for Papa Ltd for the year ended 31st December 2018 using the indirect method of calculating operating cash flow and write a brief comment on the cash flow for the period. Papa Ltd Statement of Profit or Loss Account for the year ended 31st December 2018 GHC Revenue 540,000 Cost of sales (155,000) Gross profit 385,000 Investment income – interest received 15,000 Loss on disposal of equipment (18,000) Depreciation (94,000) Administrative and selling expenses (25,000) Operating profit before interest 263,000 Interest expense (10,000) Profit before taxation 253,000 Taxation (56,000) Profit after tax 197,000 Statement of financial position as at 31st December 2018 2017 GHC GHC Non-current assets Vehicle at cost 180,000 150,000 Accumulated depreciation (137,000)…arrow_forwardInformation from the balance sheet, income statement, and statement of cash flows for Nike follows. Refer to these financial statements to answer the requirements. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. NIKE INC. Consolidated Income Statements For Year Ended (5 millions) Revenues Cost of sales Gross profit May 31, May 31, 2018 2019 $40,517 $37,797 21,643 20,441 18,874 17,356 Demand creation expense Operating overhead expense 5,153 4,977 10,349 9,334 Total selling and administrative expense 15,502 11,511 Interest expense (income), net 49 54 Other (income) expense, net Income before income taxes Income tax expense Net income (78) 3,401 66 5,725 772 2,392 $2,629 $3,333 NIKE INC. Consolidated Balance Sheets May May 31, 31, 2019 2018 $ millions (except share price) Current assets Cash and equivalents $4,466 $4,249 Short-term investments 197 996 Accounts…arrow_forwardces The chief accountant for Grandview Corporation provides you with the company's 2024 statement of cash flows and income statement. The accountant has asked for your help with some missing figures in the company's comparative balance sheets. These financial statements are shown next ($ in millions). Cash Flows from Operating Activities: Collections from customers GRANDVIEW CORPORATION Statement of Cash Flows For the Year Ended December 31, 2024 Payment to suppliers Payment of general and administrative expense Payment of income taxes Net cash flows from operating activities Cash Flows from Investing Activities: Sale of investments Cash Flows from Financing Activities: Issuance of common stock Payment of dividends Net cash flows from financing activities Net increase in cash GRANDVIEW CORPORATION Income Statement For the Year Ended December 31, 2024 Sales revenue Cost of goods sold Gross profit Operating expenses: General and administrative expense Depreciation expense Total operating…arrow_forward
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