The assignment focuses on the financial statements of Starbucks Corporation. Starbucks Corporation is a worldwide roster and retailer of specialty coffees. The purpose of this assignment is to gain familiarity with the annual report that all public companies must file, and more specifically the financial statements included in the annual report.
Obtain the 2012 annual report (10-K) for Starbucks Corporation. You can access all SEC forms at http://www.sec.gov/edgar.shtml. Once you find the applicable annual report for Starbucks Corporation, skim through the material to see what is there. Use the information contained in the annual report to answer the questions below (you should use only the annual report to answer the questions below, no outside sources should be used). Only answer the specific question asked and do not provide any additional information. Your answers should be typed and include the appropriate question number.
1. How much cash did Starbucks have on September 30, 2012 (include cash equivalents as part of cash). (1 Point) 1188.6 million 2. Write the company’s accounting equation as of September 30, 2012, by filling in the applicable dollar amounts. (2 Points) Asset = Liability + Stockholder Equity
8,219.2 = 3104.7 + 5114.5
3. What was the amount of net revenues (total sales) and net earnings for the year ended September 30, 2012? (2 Points) Net revenues:13,299.5 net earnings:1383.8
4. What is Starbuck’s EPS for the year ended September 30, 2012 (basic and diluted)? (2 Points) Earnings per share — basic: 1.83
Earnings per share — diluted: 1.79
5. Compute the P-E ratio assuming the market price for Starbuck’s stock was $50.50 at the time (basic and diluted). (2 Points)
6. Suppose the average P-E ratio for companies at that time was 15. Do investors expect Starbucks’ EPS to grow faster or slower...