Starbucks presented the following in its 2010 annual report: No customer accounts for 10% or more of
Question:
No customer accounts for 10% or more of revenues. Revenues are shown based on the geo-graphic location of our customers. Revenues from countries other than the US consist primarily of revenues from Canada and the UK, which together account for approximately 64% of net revenues from other countries for fiscal 2010.
Required
a. Comment on the vertical common- size presentation for Beverage, Food, Whole bean and soluble coffees and Other.
b. 1. Prepare a horizontal common- size analysis of revenue with September 28, 2008 as the base for Beverage, Food, Whole Bean and Soluble Coffees, and Other
2. Comment on b(1).
c. For net revenues from external customers:
1. Prepare a vertical common- size analysis for United States and other countries. Use total as the base.
2. Comment on c(1).
3. Prepare a horizontal common- size analysis, with September 28, 2008 as the base, for United States and other countries.
4. Comment on c( 3).
d. 1. Prepare a vertical common- size analysis for long- lived assets. Use total as the base. 2. Comment on d(1).
3. Prepare a horizontal common- size analysis, with September 28, 2008 as the base, for long- lived assets.
4. Comment ond(3).
Step by Step Answer:
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1133188797
13th edition
Authors: Charles H. Gibson