Walden University Week 9 Constellation Brand Statement of Cash Flows Questions
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FIN STMTS FOR WEEK 9 ASSIGNMENT
CONSTELLATION BRANDS INC.
Consolidated Balance Sheets
In millions
As of
Feb 28, 2021
As of
Feb 28, 2020
As of
Feb 28, 2019
Cash & cash equivalents
Accounts receivable*
Inventories
Prepaid expenses and other current assets
$ 460.6
785.3
1,291.1
507.5
$ 81.4
864.8
1,373.6
1,164.3
$ 93.6
846.9
2,130.4
613.1
Total current assets
Property, plant and equipment, net
Goodwill
Intangible assets, net
Equity method investments
Securities measured at fair value
Other long-term assets
3,044.5
5,821.6
7,793.5
2,732.1
2,788.4
1,818.1
3,106.6
3,484.1
5,333.0
7,757.1
2,718.9
3,093.9
1,117.1
3,819.1
3,684.0
5,267.3
8,088.8
3,198.1
3,465.6
3,234.7
2,293.0
$ 27,104.8
$ 27,323.2
$ 29,231.5
$29.2
460.0
779.9
$ 238.9
734.9
557.6
780.4
$ 791.5
1,065.2
616.7
690.4
1,269.1
10,413.1
1,493.5
2,311.8
11,210.8
1,326.3
3,163.8
11,759.8
1,470.7
13,175.7
1,606.4
(2,789.8)
15,117.8
14,848.9
1,516.8
(2,814.0)
13,695.3
16,394.3
1,413.0
(2,784.3)
14,276.2
(5.3)
76.2
(67.7)
13,929.1
12,474.3
12,837.2
$ 27,104.8
$ 27,323.2
$ 29,231.5
ASSETS
Total assets
LIABILITIES & STOCKHOLDERS EQUITY
Short term borrowings
Current maturities of long-term debt
Accounts payable
Other accrued expenses and current liabilities
Total current liabilities
Long-term debt
Other long-term liabilities
Total liabilities
Common stock and additional paid-in capital
Treasury stock
Retained earnings
Accumulated other comprehensive income
Total stockholders equity
Total liabilities & stockholders equity
*Constellations bad debts are immaterial, so you can assume Gross Accounts Receivable = Net Accounts Receivable.
Consolidated Statements of Cash Flows
In millions
OPERATING ACTIVITIES
Net Income
Adjustments to reconcile net income to cash from operations:
Unrealized gain on investments measured at fair value
Depreciation expense
Amortization expense
Intangible asset impairment charges
Stock-based compensation expense
Equity in equity-method investee earnings, net of dividends
Other, net
Changes in operating assets and liabilities:
Accounts receivable
Inventory
Prepaid expenses and other current assets
Accounts payable
Other accrued expenses and liabilities
Net cash provided by operating activities
Year ended
Feb 28,
2021
$ 2,031.8
Year ended
Feb 28,
2020
$ 21.4
Year ended
Feb 28,
2019
$ 3,459.1
(802.0)
293.8
35.6
24.0
63.0
673.4
402.0
2,126.4
326.5
32.8
449.7
60.4
560.8
(1,016.9)
(1,971.2)
333.1
6.0
108.0
64.1
484.7
59.6
(22.0)
(71.9)
193.7
65.7
(95.7)
(138.4)
(29.5)
8.1
16.8
16.6
(61.9)
(103.0)
21.4
(22.1)
2,806.5
2,551.1
2,246.3
(222.4)
(864.8)
999.5
(0.2)
(48.2)
(726.5)
269.7
(26.0)
(4,081.5)
(886.3)
(45.6)
181.6
(87.9)
(531.0)
(4,831.8)
1,194.7
58.9
1,291.3
78.2
3,657.6
63.2
(575.0)
(2,960.2)
(57.8)
(569.2)
(50.0)
(2,747.9)
(34.7)
(557.7)
(504.3)
(62.8)
(7.2)
(2,339.4)
(2,032.3)
2,588.8
379.2
81.4
(12.2)
93.6
3.3
90.3
$ 460.6
$ 81.4
$ 93.6
INVESTING ACTIVITIES
Purchases of equity method investments
Purchases of property, plant and equipment
Proceeds from sale of business
Other, net
Net cash used in investing activities
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt
Proceeds from employee stock purchases
Dividends paid
Purchases of treasury stock
Principal payments on debt
Other, net
Net cash provided by financing activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
CASH AND CASH EQUIVALENTS, END OF PERIOD
Financial Statements for Week 9 Assignment, Page 2 of 3
Consolidated Income Statements
In millions, except per share amounts
Year ended
Feb 28, 2021
$ 8,614.9
Year ended
Feb 28, 2020
$ 8,343.5
Year ended
Feb 28, 2019
$ 8,116.0
Cost of goods sold
4,148.9
4,191.6
4,035.7
Gross margin
4,466.0
4,151.9
4,080.3
1,650.9
1,547.7
1,560.1
24.0
449.7
108.0
2,791.1
2,154.5
2,412.2
Equity in earnings/(losses) of equity-method investees
150.3
(2,668.6)
2,101.6
Interest expense
385.7
428.7
367.1
12.8
2.4
1.7
2,542.9
(945.2)
4,145.0
511.1
(966.6)
685.9
$ 2,031.8
$ 21.4
$ 3,459.1
$ 10.44
$ 0.10
$ 18.24
Net sales
Selling, general and administrative expenses
Intangible asset impairment charges
Operating income
Loss on extinguishment of debt
Income before income taxes
Income tax expense/(benefit)
Net income
Basic earnings per share
Excerpt from Notes to Consolidated Financial Statements
Note 1. Description of Business and Summary of Significant Accounting Policies
Description of Business
Constellation Brands, Inc. and its subsidiaries operate primarily in the beverage alcohol industry. We
are an international beverage alcohol company with a broad portfolio of consumer-preferred, highend imported and craft beer brands, and higher-end wine and spirits brands.
Financial Statements for Week 9 Assignment, Page 3 of 3
Week 9 Assignment
Name:
Part A Interpret Constellation Brands Statement of Cash Flows
Use Constellations Statement of Cash Flows to answer the following questions.
? Did Constellation have a net inflow or outflow of cash related to operations in the most
recent fiscal year?
? Did Constellation have a net inflow or outflow of cash related to investing activities in the
most recent fiscal year?
? Did Constellation have a net inflow or outflow of cash related to financing activities in the
most recent fiscal year?
? How much cash did Constellation spend on PP&E purchases in the most recent fiscal year?
? How much cash did Constellation spend repurchasing its stock in the most recent fiscal
year?
? How much cash did Constellation collect from customers in the most recent fiscal year?
? How much cash did Constellation pay for inventory in the most recent fiscal year?
Part B Calculate & Compare Constellation Brands Ratios
Use Constellation Brands financial statements to calculate the following ratios and summary measures for
the two most recent fiscal years. Round your answers to the nearest tenth. Where applicable, indicate
whether the ratio was more favorable for the year ended Feb 28, 2021 or 2020. Constellations stock price
was $218 per share on February 28, 2021 and $185 on February 28, 2020.
Year ended
Feb 28, 2021
Year ended
Feb 28, 2020
Is the Ratio
more favorable
in the year
ended Feb 28,
2021 or 2020?
QUICK RATIO
GROSS MARGIN %
PROFIT MARGIN %
EARNINGS PER SHARE
DEBT-TO-EQUITY RATIO
n/a
PE RATIO
n/a
EBITDA
Week 9 Assignment, Page 2 of 2
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Tags:
Income Statement
cash flow
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