2020
Apply It
CHAPTER 4
BASEL AL-QALHATI
Net Earnings:
Net earnings represent the amount of sales revenue left over after all operating expenses, interest,
taxes and preferred stock dividends (but not common stock dividends) have been deducted from a
company's total revenue.
The net earnings of Starbuck in fiscal year 2019 are 3599.2 million dollars.
Net Cash from operations:
Net cash flow from operating activities is calculated as the sum of net income, adjustments for
non-cash expenses and changes in working capital. Net cash from operating income in 2019 is
4077.9 million dollar.
Current Assets:
Current assets are all the assets of a company that are expected to be sold or used as a result of
standard business operations over the next year. Current assets include cash, cash equivalents,
accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other
liquid assets.
Current Assets for 2019 are 2769.7 million dollars.
Current Assets for 2018 are 8962.3 million dollars.
Cash and cash equivalents are the current assets that had the most significant change between
periods. Apart from it, commercial papers and corporate security debt have also a major change
between the periods.
Review of Cash flows:
Interest rate is the main factor that impacts the cash flow.