Balance sheets for Dunkin Donuts and StaucksIncome StatementsCash Flow Make financial statement...

Question

Balance sheets for Dunkin Donuts and Sta
ucks
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 Sta
ucks and Dunkin Donuts?
Question #2: After reviewing everything. Which company would you Prefer to Invest in?

finance-fqn4vrpe.docx

Ashish · Accepted Answer

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.

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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