118-W'09-MIDTERM-SBUX-KEY

118-W'09-MIDTERM-SBUX-KEY - Econ 118- W09-Midterm exam KEY...

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Unformatted text preview: Econ 118- W09-Midterm exam KEY - p1 Econ 118Financial Statement AnalysisW09 Midterm Exam 100 points ANSWER KEY All questions are based on the annual report of Starbucks (SBUX) The questions that follow are based on SBUXs income statements and balance sheets from its 2008 annual report on Form 10-K, which are attached. Use year-end numbers where a formula calls for an average. The U.S. federal statutory tax rate was 35% for all periods. Show all your work. Clearly label all answers. Watch your pluses and minuses! Question 1 Return on assets (50 points) Compute return on assets for 2008 and 2007. Disaggregate ROA into its two components. Evaluate the results. Other operating expenses are NOT special items. Ignore any special items which may be included in the other of the line item Interest income and other, net. ROA NI + (1 - t) Int exp + MI in NI +/- After-tax special items ROA = ___________________________________________________ Year-end (vs average) total assets 2008 ROA =...
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118-W'09-MIDTERM-SBUX-KEY - Econ 118- W09-Midterm exam KEY...

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