Accounting scavenger hunt

19. On which statement does Starbucks Corporation present comprehensive income?

a. Statement of shareholders’ equity

b. Income statement

c. Statement of comprehensive income

d. Combined Statement of Comprehensive Income

20. How much unrealized holding gain (loss) on Available-For-Sale securities is reported in Comprehensive Income for 2015 (in millions)?

a. $1.6

b. $(0.6)

c. ($224.7)

d. $1.4

Chapter 5

21. What is the largest asset on Starbucks Corporation’s 2015 balance sheet?

a. Cash

b. Inventories

c. PP&E

d. Accounts Receivable

22. How much is Starbucks Corporation’s unsecured revolving credit facility (i.e., line of credit)?

a. $125,000,000

b. $750,000,000

c. $25,800,800

d. $1,000,000,000

23. Where can Accumulated Other Comprehensive Income NOT be found? Recall this is different from Comprehensive Income.

a. Income Statement

b. Equity section of the Balance Sheet

c. Statement of Shareholders’ Equity

24. Which category of fair value securities is largest for Starbucks?

a. Level 1

b. Level 2

c. Level 3

25. Starbucks Corporation has future commitments related to contractual agreements. Which presents a commitment for the company?

a. Litigation

b. Operating lease obligations

c. Indemnities and guarantees

26. Which of the following financial statements does NOT disclose information about dividends?

a. Statement of cash flows

b. Balance sheet

c. Statement of shareholder’s equity

27. Which of the following are NOT valued at fair value according to the Summary of Significant Accounting Policies disclosure in Starbucks Corporation’s 10K?

a. Cash and cash equivalents

b. Available for Sale Securities

c. Inventory

d. Trading Securities

For the next three questions, use the ratios from Chapter 5 in your textbook

28. What is Starbucks Corporation’s 2015 Current Ratio?

a. 1.19

b. 1.88

c. 1.96

d. 1.37

29. What is Starbucks’ 2015 Inventory Turnover? Note the Companyan unusual method of calculating Cost of Goods Sold. COGS includes occupancy costs, as Starbucks argues that they are not only selling their products but also the experience of their stores.

a. 5.96

b. 3.00

c. 6.11

d. 6.5

30. What is Starbucks Corporation’s 2015 Profit Margin on Sales?

a. 14.39%

b. 12.57%

c. 14.40%

d. 18.79%

Chapter 23

31. Does Starbucks Corporation use the direct or indirect method for its cash flow statement?

a. Direct

b. Indirect

32. What is the largest single item that caused Starbucks Corporation’s cash flow from operations to differ from net income in 2015?

a. Depreciation

b. Inventories

c. Accounts receivable

d. Accounts payable

33. From what category of activities did Starbucks Corporation generate the greatest amount of cash in 2015?