FIN 515 Devry entire course DEVRY FIN 515 Week 1 Problem Set | Page 2

The following is provided for use in answering the next set of questions. You may
also find table 2.5 on page 53 of your text and all questions on pages 56–57.
29. In fiscal year 2011, Starbucks Corporation (SBUX) had revenue of $11.70 billion,
gross profit of $6.75 billion, and net income of $1.25 billion. Peet’s Coffee and Tea
(PEET) had revenue of $372 million, gross profit of $72.7 million, and net income of
$17.8 million.
a. Compare the gross margins for Starbucks and Peet’s.
b. Compare the net profit margins for Starbucks and Peet’s.
c. Which firm was more profitable in 2011?
31. See Table 2.5 showing financial statement data and stock price data for Mydeco
Corp.
a. How did Mydeco’s accounts receivable days change over this period?
b. How did Mydeco’s inventory days change over this period?
c. Based on your analysis, has Mydeco improved its management of its working
capital during this time period?
32. See Table 2.5 showing financial statement data and stock price data for Mydeco
Corp.
a. Compare Mydeco’s accounts payable days in 2009 and 2013.
b. Did this change in accounts payable days improve or worsen Mydeco’s cash
position in 2013?
33. See Table 2.5 showing financial statement data and stock price data for Mydeco
Corp.
a. By how much did Mydeco increase its debt from 2009 to 2013?
b. What was Mydeco’s EBITDA/Interest coverage ratio in 2009 and 2013? Did its
coverage ratio ever fall below 2?
c. Overall, did Mydeco’s ability to meet its interest payments improve or decline over
this period?
42. For fiscal year 2011, Starbucks Corporation (SBUX) had total revenues of $11.70
billion, net income of $1.25 billion, total assets of $7.36 billion, and total
shareholder’s equity of $4.38 billion.