Balance sheets for Dunkin Donuts and Starbucks Income Statements Cash Flow Make financial statement analysis by calculating and comparing the following ratios of the two companies Question #1: Asset...

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Balance sheets for Dunkin Donuts and Starbucks Income Statements Cash Flow Make financial statement analysis by calculating and comparing the following ratios of the two companies Question #1: Asset Management Ratios of Starbucks and Dunkin Donuts? Question #2: After reviewing everything. Which company would you Prefer to Invest in?
Answered Same DayMay 02, 2021

Answer To: Balance sheets for Dunkin Donuts and Starbucks Income Statements Cash Flow Make financial statement...

Ashish answered on May 06 2021
141 Votes
Make financial statement analysis by calculating and comparing the following ratios of the two companies.
Question #1: Asset Management Ratios of Starbucks and Dunkin Donuts?
Solution-
Starbucks Assets Management Ratio Analysis for the year 2018:
Inventory turnover = Cost of goods sold / Average Inventory
Inventory turnover = $10,174,500 / (($1,400,500 + $1,364,000) /2)
Inventory turnover = 7.36 times
Days Inventory Outstanding (DIO) = 365 days / Inventory turnover
Days Inventory Outstanding (DIO) = 365 days / 7.36
Days Inventory Outstanding (DIO) = 50 days
Receivables turnover ratio = Net receivable sales/ Average accounts receivables
Receivables turnover ratio = $24,719,500 / (($693,100 + $870,400) /2)
Receivables turnover ratio = 31.62 times
Days Sales Outstanding (DSO) = 365 days / Receivables turnover ratio
Days Sales Outstanding (DSO) = 365 days / 31.62
Days Sales Outstanding (DSO) = 12 days
Fixed Asset Turnover Ratio = Sales Revenue / Total Fixed...
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