“There is a growing discrepancy
between the company’s Cash Flow from Operating Activities and its
reported Net Income. Summed over the last three years, total Net
Income is about $10 billion while the total Cash Flow from
Operations is double this amount, about $20 million! The company
must be overstating its expenses and reserves/allowances.”
After reviewing Starbucks' 2018 10K, comment on this statement.
What are the main reasons for the above-mentioned discrepancy? Do
you agree that the discrepancy represents a...