submit both a horizontal and vertical analysis of Starbucks’ accounts receivable, fixed assets, and debt financing

Anonymous
timer Asked: Jun 18th, 2016
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Question description

For this assignment, due in Module Four, you will submit both a horizontal and vertical analysis of Starbucks’ accounts receivable, fixed assets, and debt financing. Use basic financial analysis to examine any horizontal and any vertical changes in Starbucks’ accounts receivable, fixed assets, and debt financing balances over time. Be sure also to discuss how Starbucks’ methods for accounting for receivables and evaluating uncollectible receivables, purchase of fixed assets, and methods of debt financing impact the recording process and presentation of financial statements (Critical Element II). In other words, what are this company’s methods for accounting for receivables and evaluating uncollectible receivables? What types of fixed assets are acquired, and what methods are preferred for debt financing? How do those affect how financial information is communicated?

Specifically, the following critical elements must be addressed:

II. Horizontal and Vertical Analysis: In this section, you will conduct horizontal and vertical analyses for the balance sheet and income statement accounts and report any significant observations for a two-year period. You should include a table of your calculations as an appendix to your analysis. Include all calculations in an Excel document. Specifically discuss the following categories:

  1. Accounts Receivable:

    1. Use basic financial analysis to examine any horizontal changes in Starbucks’ accounts receivable balances over time.

    2. Use basic financial analysis to examine any vertical changes in Starbucks’ accounts receivable balances over time.

    3. Analyze how Starbucks’ methods for accounting for receivables and evaluating uncollectible receivables impact the recording process and

      presentation of financial statements. In other words, what are this company’s methods for accounting for receivables and evaluating

      uncollectible receivables, and how do those affect how financial information is communicated?

  2. Asset Acquisition, Depreciation, and Amortization:

    1. Use basic financial analysis to examine any horizontal changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization over time.

    2. Use basic financial analysis to examine any vertical changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization over time.

    3. Analyze Starbucks’ methods for fixed asset and intangible asset acquisitions as well as depreciation and amortization, including asset categorization. How do these methods affect the balance sheet, income statement, and statement of cash flows?

  3. Debt Financing

    1. Use basic financial analysis to examine any horizontal changes in Starbucks’ short- and long-term debt over time.

    2. Use basic financial analysis to examine any vertical changes in Starbucks’ short- and long-term debt over time.

    3. Analyze Starbucks’ method of debt financing. In your analysis, you should address both current and long-term liabilities, including the

      issuance of bonds.

Rubric

Guidelines for Submission: Milestone One should adhere to the following formatting requirements: 2–3 pages (not including cover page or appendix), double- spaced, using 12-point Times New Roman font and the most current guidelines for APA formatting. Include all calculations in an Excel document.

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions.

Critical Elements

Proficient (100%)

Needs Improvement (75%)

Not Evident (0%)

Value

Analysis: Accounts: Horizontal

Uses basic financial analysis to examine any horizontal changes in Starbucks’ accounts receivable balances over time

Uses basic financial analysis to examine any horizontal changes in Starbucks’ accounts receivable balances over time, but with gaps in accuracy or relevant detail

Does not use basic financial analysis to examine any horizontal changes in Starbucks’ accounts receivable balances over time

10

Analysis: Accounts: Vertical

Uses basic financial analysis to examine any vertical changes in Starbucks’ accounts receivable balances over time

Uses basic financial analysis to examine any vertical changes in Starbucks’ accounts receivable balances over time, but with gaps in accuracy or relevant detail

Does not use basic financial analysis to examine any vertical changes in Starbucks’ accounts receivable balances over time

10

Analysis: Accounts: Methods

Analyzes how Starbucks’ methods for accounting for receivables and evaluating uncollectible receivables impact the recording process and financial statement presentation

Analyzes how Starbucks’ methods for accounting for receivables and evaluating uncollectible receivables impact the recording process and financial statement presentation, but with gaps in logic or detail

Does not analyze how Starbucks’ methods for accounting for receivables and evaluating uncollectible receivables impact the recording process and financial statement presentation

10

Analysis: Asset: Horizontal

Uses basic financial analysis to examine any horizontal changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization over time

Uses basic financial analysis to examine any horizontal changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization over time, but with gaps in accuracy or relevant detail

Does not use basic financial analysis to examine any horizontal changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization over time

10

Analysis: Asset: Vertical

Uses basic financial analysis to examine any vertical changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization over time

Uses basic financial analysis to examine any vertical changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization over time, but with gaps in accuracy or relevant detail

Does not use basic financial analysis to examine any vertical changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization over time

10

Analysis: Asset: Methods

Analyzes Starbucks’ methods for fixed asset and intangible asset acquisitions as well as depreciation and amortization for how they affect the balance sheet, income statement, and statement of cash flows

Analyzes Starbucks’ methods for fixed asset and intangible asset acquisitions as well as depreciation and amortization for how they affect the balance sheet, income statement, and statement of cash flows, but with gaps in logic or detail

Does not analyze Starbucks’ methods for fixed asset and intangible asset acquisitions as well as depreciation and amortization for how they affect the balance sheet, income statement, and statement of cash flows

10

Analysis: Debt: Horizontal

Uses basic financial analysis to examine any horizontal changes in Starbucks’ short- and long-term debt over time

Uses basic financial analysis to examine any horizontal changes in Starbucks’ short- and long-term debt over time, but with gaps in accuracy or relevant detail

Does not use basic financial analysis to examine any horizontal changes in Starbucks’ short- and long-term debt over time

10

Analysis: Debt: Vertical

Uses basic financial analysis to examine any vertical changes in Starbucks’ short- and long-term debt over time

Uses basic financial analysis to examine any vertical changes in Starbucks’ short- and long-term debt over time, but with gaps in accuracy or relevant detail

Does not use basic financial analysis to examine any vertical changes in Starbucks’ short- and long-term debt over time

10

Analysis: Debt: Method

Analyzes Starbucks’ method of debt financing, addressing current and long-term liabilities and the issuance of bonds

Analyzes Starbucks’ method of debt financing, addressing current and long-term liabilities and the issuance of bonds, but with gaps in logic or detail

Does not analyze Starbucks’ method of debt financing, addressing current and long-term liabilities and the issuance of bonds

10

Articulation of Response

Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main idea

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

10

Total

100%


Tutor Answer

Professor Brown
School: UT Austin

Hello friend? here is the excel part sending the report in a few 

Fiscal year is October-September. All values USD millions.
Sales/Revenue
Cost of goods sold
Gross Income

Salaries and wages
Other SG&A
Unusual Expense
EBIT after Unusual Expense
Non Operating Income/Expense
Non-Operating Interest Income
Equity in Affiliates (Pretax)

Interest Expense
Gross Interest Expense
Interest Capitalized

Pretax Income
Income Tax
Consolidated Net Income
Minority Interest Expense

Net Income
Net Income After Extraordinaries
Net Income Available to Common

EPS (Basic)
Basic Shares Outstanding

EPS (Diluted)
Diluted Shares Outstanding

EBITDA

2014
16.45
12.63
3.82

2015
19.15
14.59
4.56

2014
1
1
46.8
2.86
48.4
47.3
268.3

2015
1.18
1.18
305.9
3.68
42.2

64.1
70.3
6.2

73.7
77.3
3.6

3.16
1.09
2.07
0
2.07
2.07
2.07
1.38
1.51
1.36
1.53
3.56

3.9
1.14
2.76
1.9
2.76
2.76
2.76
1.84
1.5
1.82
1.53
4.31

249.9

Varience
2.7
1.96
0.74
0
1
0.18
0.18
259.1
0.82
-6.2
-47.3
-18.4
0
9.6
7
-2.6
0
0.74
0.05
0.69
1.86
0.69
0.69
0.69
0.46
-0.01
0.46
0
0.75

Assets
Fiscal year is October-September. All values USD millions.
Cash & Short Term Investments
Cash Only
Short-Term Investments

Total Accounts Receivable
Inventories
Other Current Assets

Total Current Assets
Net Property, Plant & Equipment
Property, Plant & Equipment - Gross
Accumulated Depreciation

Total Investments and Advances
Intangible Assets
Other Assets
Total Assets

2014
1.84
1.71
135.4

2015
1.61
1.53
81.3

631
1.09
603

719
1.31
715.9

4.17

4.35

2.36
8.58
5.06
479.3
1.13
198.9
10.75

2.66
9.64
5.55
575.9
2.1
415.9
12.45

2014
533.7
4.2
2.5
3.04
2.05
896.4
385.3
5.48
5.27
5.27
1.7
5.27
10.75

2015
684.2
5.4
2.96
3.65
2.35
761.1
407.1
6.63
5.82
5.82
1.8
5.82
12.45

Liabilities & Shareholders' Equity
Accounts Payable
Income Tax Payable
Other Current Liabilities

Total Current Liabilities
Long-Term Debt
Deferred Taxes

Other Liabilities
Total Liabilities
Common Equity (Total)
Total Shareholders' Equity
Accumulated Minority Interest
Total Equity

Liabilities & Shareholders' Equity

Varience
-0.23
-0.18
-54.1
88
0.22
112.9
0.18
0.3
1.06
0.49
96.6
0.97
217
1.7

150.5
1.2
0.46
0.61
0.3
-135.3
21.8
1.15
0.55
0.55
0.1
0.55
1.7

Fiscal year is October-September. All values USD millions.
Sales/Revenue
Cost of goods sold
Gross Income

Salaries and wages
Other SG&A
Unusual Expense
EBIT after Unusual Expense
Non Operating Income/Expense
Non-Operating Interest Income
Equity in Affiliates (Pretax)

Interest Expense
Gross Interest Expense
Interest Capitalized

Pretax Income
I...

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Anonymous
Super fast turn around time. Very impressed and will use Studypool again if I need a quick job. Communication was a bit tough but not unbearable.

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