Review Starbucks’s and notes in Appendix A.
Required:
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 was paid and declared in 2017? If these amounts differ, where is the difference on the balance sheet?
7. Are Starbucks’s 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?
