Exhibit 3 36 Presents A Statement of Cash Flows For Starbucks
Exhibit 3 36 Presents A Statement of Cash Flows For Starbucks
Exhibit 3 36 Presents A Statement of Cash Flows For Starbucks
Starbucks
Exhibit 3.36 presents a statement of cash flows for Starbucks for 2006, 2007, and 2008. This
statement is an expanded version of the statement of cash flows for Starbucks shown in Exhibit
1.28.Requireda. Explain why equity in income of investees appears as a subtraction when net
income is converted to cash flow from operations.b. Compute the amount of cash received from
investees as dividends each year. To answer this question, you need to refer to the income
statement of Starbucks in Exhibit 1.27 in Chapter 1 (Integrative Case 1.1).c. Explain why stock-
based compensation appears as an addition to net income to compute cash flow from
operations.d. Discuss the relation between net income and cash flow from operations for each
of the three years.e. Discuss the relation between cash flows from operating, investing, and
financing activities for each of the three years.f. Refer to the income statement for Starbucks in
Exhibit 1.27 in Chapter 1 (Integrative Case 1.1). Compute the amount of EBITDA for 2006,
2007, and 2008.g. Discuss the relationships among net income, non-working capital
adjustments, working capital adjustments, operating cash flows, and EBITDA for the three
years. Are the patterns similar or different? What are the primary determinants of the differences
between the summary measures net income, operating cash flows, and EBITDA?h. The income
statement in Exhibit 1.27 in Chapter 1 (Integrative Case 1.1) shows depreciation and
amortization expense as follows:However, the statement of cash flows shows addbacks for
depreciation and amortization as follows:Explain why the amount on the income statement
differs from the amount on the statement of cash flows eachyear.
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Exhibit 3 36 presents a statement of cash flows for Starbucks
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