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Part 2 Fundamental Concepts in Financial Management

Table IC 3-3

Statement of Stockholders’ Equity, 2008
COMMON STOCK Shares Amount $460,000 Retained Earnings $ 203,768 (160,176) (11,000) (171,176) $ 32,592 Total Stockholders’ Equity $663,768

Balances, 12/31/07 2008 Net Income Cash Dividends Addition (Subtraction) to Retained Earnings Balances, 12/31/08

100,000

100,000

$460,000

(171,176) $492,592

Table IC 3-4

Statement of Cash Flows, 2008
($160,176) 116,960 378,560 353,600 (280,960) (572,160) ($164,176)

Operating Activities Net income Depreciation and amortization Increase in accounts payable Increase in accruals Increase in accounts receivable Increase in inventories Net cash provided by operating activities Long-Term Investing Activities Additions to property, plant, and equipment Net cash used in investing activities Financing Activities Increase in notes payable Increase in long-term debt Payment of cash dividends Net cash provided by financing activities Summary Net decrease in cash Cash at beginning of year Cash at end of year

($711,950) ($711,950)

$436,808 400,000 (11,000) $825,808 ($ 50,318) 57,600 $ 7,282

Chapter 3 Financial Statements, Cash Flow, and Taxes

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Access the Thomson ONE problems through the CengageNOW™ web site. Use the Thomson ONE—Business School Edition online database to answer this chapter’s questions.

Exploring Starbucks’ Financial Statements
Over the past decade, Starbucks coffee shops have become an increasingly familiar part of the urban landscape. Currently (2008), the company operates more than 8,000 coffee shops in all 50 states, in the District of Columbia, and in international markets; and in 2008, it had approximately 145,000 employees. Thomson ONE can access a wealth of financial information for companies such as Starbucks. To find some background information, begin by