Check my worl The following information is provided for Starbucks (SBUX) and McD

Question

Check my worl The following information is provided for Starbucks (SBUX) and McDonalds (MCD) for the fiscal year (2017). Al amounts are in millions of USD SBUX MCD 24.621.90 Net Sales Cost of Goods Sold Operating Expenses 22,386.60 9.038.2011,698.80 9,605.30 5178.60 2462.302671.20S Cash& Cash Equivalents Short-term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets 228.60 870.40 1.364.00 358.10 1,569.00 54.20 495.90 3.40 4790.30 5,28 Average Plant Assets Average Total Assets 4,726.65 4.339.05 22.18760 31,791.75 4,220.70 8,908.60 3,468.30 33,228.20 Total Current Liabilities Total Liabilities

Explanation / Answer

Formula for Gross Margin= (Net Sales- Cost Of Goods Sold)/Net Sales

Net income/Average Total assets

3743.1/14339.05=26.10%

Net income/Average Total assets

7544.5/31791.75=23.73%

Current Asset/Current Liaility

5283.4/4220.7=1.25

Current Asset/Current Liaility

4790.3/3468.3=1.38

(Cash + Accounts Receivable + Short-term Investments) / Current Liabilities

(2463.30+870.4+228.6)/4220.70=0.8437

(Cash + Accounts Receivable + Short-term Investments) / Current Liabilities

(2671.2+1569)/3468.3=1.22

cost of goods sold/ averae inventory

=9038.2/1364=6.63

cost of goods sold/ averae inventory

=11698.8/54.2=215.85

Particulars SBUX MCD Gross Margin (22386.60-9038.2)/22386.60=59.62% (24621.90-11698.80)/24621.90=51.67% Operating Margin (22386.60-9038.2-9605.3)/22386.60=16.72% (24621.90-11698.8-5178.6)/24621.90=30.64% Return On assets

Net income/Average Total assets

3743.1/14339.05=26.10%

Net income/Average Total assets

7544.5/31791.75=23.73%

Current Ratio

Current Asset/Current Liaility

5283.4/4220.7=1.25

Current Asset/Current Liaility

4790.3/3468.3=1.38

Acid test ratio

(Cash + Accounts Receivable + Short-term Investments) / Current Liabilities

(2463.30+870.4+228.6)/4220.70=0.8437

(Cash + Accounts Receivable + Short-term Investments) / Current Liabilities

(2671.2+1569)/3468.3=1.22

Days sales uncollected (Accounts receivable ÷ Net annual credit sales) x 365.=870.4/22386.6*365=14.19 (Accounts receivable ÷ Net annual credit sales) x 365.=1569/24621.9*365=23.26 Days inventory outstanding

cost of goods sold/ averae inventory

=9038.2/1364=6.63

cost of goods sold/ averae inventory

=11698.8/54.2=215.85

total asset turnover revenue/total asset=22386.6/14339.05=1.56 revenue/total asset=31791.75/24621.9=0.77 plant asset turnover revenue/plant asset=22386.6/4726.65=4.73 revenue/plant asset=24621.9/22187.6=1.11

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.