Can you help me addexplanation on why there are drastic changes in each of those accounts (i.e. intangibles). While the numbers are reported, a full in-depth analysis discusses and shares with the reader why these changes occurred. Add notes about the financial which are an integral part of the statements

The paper was about:

Organizational Analysis & Design Plan: Project Description and Scoring Guide

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 companys 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. AnalyzeStarbucksmethodofdebtfinancing.Inyouranalysis,youshouldaddressbothcurrentandlong-termliabilities,includingtheissuanceofbonds.

I just need more explanation and financial analysis on the paper. Thank you

MURIELLE ZOUNDI Horizontal and Vertical Analysis: Accounts Receivable, Fixed Assets, and Debt Financing MILESTONES 1 1. Accounts receivables: 1. Horizontal Analysis: Considering the 2 year period 2014 and 2015, horizontal analysis depicts that accounts receivable has increased by $ 88 million which is an increase by 13.9% when compared to that of previous year 2014. 2. Vertical Analysis: The vertical analysis depicts that accounts receivable has remained somewhat constant as a percentage of total assets. Where accounts receivable was reported at 5.87% in the year 2014 it fell to 5.78% in the year 2015. 3. Method of accounting and impact on financial statements thereof: Receivables are accounted for the following: a. credit sale made to customers for sale of product and CPG b. providing food services to consumers c. amount accrued for royalty receivable for license Allowance for doubtful debts is recognized considering the trend in bad debts that arose over years. Historical experiences are thus used to make estimates to record the provisions. On the basis of said accounting the allowance for doubtful debts was reported at $ 10.8 million and $ 6.7 million for the year 2015 and 2014 respectively. 2. Fixed and intangible assets: 1. Horizontal Analysis: The absolute change in gross fixed assets was reported at $ 1061 million which was as increase by 12.4% over the previous year 2014.The accumulated depreciation fell by $ 492 million which was 9.7% fell from previous year. The net assets rose by $ 569 million, an increase of 16.2%.The intangible assets rose by $ 246 million which was 89.8% increase from the previous year. 2. Vertical Analysis: The vertical analysis depicted a constant ratio maintained between net property plant and equipment which hovers around 32.73% and 32.85%. However there was fall in investment in gross plant and equipment which was 79.8% in year 2014 which fell to 77.47% in year 2015. The accumulated depreciation was 47.08% as percentage of total assets in year 2014 which fell to 44.62% in year 2015. 3. Method of accounting and impact on financial statements thereof: The company includes all the direct cost incurred to acquire a plant or property along with any direct labor and overhead incurred for the said purpose to determine the total cost pf acquisition of plant, property and equipment. The company follows straight method for depreciating its fixed assets. The useful life of assets vary according to nature of assets which range from 2 to 15 years for equipment and 30 to 40 years for building. Leasehold improvements are subject to amortization. They are amortized over the useful life which is generally taken as 10 years. Besides goodwill, other intangible assets consists of: a. Finite-lived intangible assets, consisting of acquired rights, trade secrets, licensing agreements, patents and copyrights which are amortized over their estimated useful lives. b. Indefinite-lived intangibles, consisting of trade names and trademarks. 3. Debt financing: 1. Horizontal Analysis: The horizontal analysis depicts an increase of long term debt by $ 300 million from year 2014 to 2015 which was an increase of 14.6%. The firm did not raise any short term debt for the period under concern. 2. Vertical Analysis: The vertical analysis reported a ratio of 18.87% between long term debt and total liabilities side of balance sheet for the year 2015. The ratio was 19.05% for the year 2014.There was no short term debt. 3. Method of accounting and impact on financial statements thereof: There are currently two long term debt facility available with the firm and they are: a. Revolving credit facility: Out of the total capacity of credit of $ 750 million, $ 150 million can be raised by issue of letter of credit. This facility can be used to meet the requirement of working capital, acquisition and for financing share repurchase program. b. Another facility is commercial paper program for which the firm can issue unsecured commercial paper up to $ 1 billion Appendix: Horizontal Analysis- INCOME STATEMENT chang 2015 2014 e 1916 1644 Revenue 3 8 2715 Cost of revenue 7788 6859 929 1137 Gross profit 5 9589 1786 Operating expenses Sales, General and administrative 6608 5630 978 Other operating expenses 1166 878 288 Total operating expenses 7774 6508 1266 Operating income 3601 3081 520 Interest Expense 70 64 6 % age change 16.51% 13.54% 18.63% 17.37% 32.80% 19.45% 16.88% 9.38% Other income (expense) Income before taxes Provision for income taxes Net income from continuing operations Other Net income Net income available to common shareholders Earnings per share Basic Diluted 372 3903 1144 2759 -2 2757 143 3160 1092 2068 0 2068 229 743 52 691 -2 689 160.14 % 23.51% 4.76% 33.41% 0.00% 33.32% 2757 2068 689 33.32% 1.84 1.82 1.38 1.35 0.46 0.47 33.33% 34.81% Horizontal Analysis-BALANCE SHEET ASSETS Current assets Cash Cash and cash equivalents Short-term investments Total cash Receivables Inventories Deferred income taxes Prepaid expenses Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Deferred income taxes Other long-term assets Total non-current assets Total assets LIABILITIES AND STOCKHOLDERS' 2015 2014 change % age change 1530 81 1611 719 1306 382 334 4353 1708 135 1844 631 1091 317 286 4169 -178 -54 -233 88 215 65 48 184 -10.4% -40.0% -12.6% 13.9% 19.7% 20.5% 16.8% 4.4% 9642 -5554 4088 664 1575 520 829 416 8093 1244 6 8581 -5062 3519 833 856 274 903 199 6584 1075 3 1061 -492 569 -169 719 246 -74 217 1509 12.4% 9.7% 16.2% -20.3% 84.0% 89.8% -8.2% 109.0% 22.9% 1693 15.7% EQUITY Liabilities Current liabilities Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Non-current liabilities Long-term debt Deferred revenues Minority interest Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity 684 259 1205 1506 3654 534 272 1003 794 436 3039 2348 2048 300 14.6% 2 625 2975 6628 2 392 2442 5481 0 233 533 1147 0.0% 59.4% 21.8% 20.9% 2 41 5975 -199 5818 1244 6 1 39 5207 25 5272 1075 3 1 100.0% 2 5.1% 768 14.7% -224 -896.0% 546 10.4% Vertical Analysis- INCOME STATEMENT 2015 100.00 Revenue % Cost of revenue 40.64% Gross profit 59.36% Operating expenses Sales, General and administrative 34.48% Other operating expenses 6.08% Total operating expenses 40.57% Operating income 18.79% Interest Expense 0.37% Other income (expense) 1.94% Income before taxes 20.37% Provision for income taxes 5.97% Net income from continuing operations 14.40% 2014 100.00 % 41.70% 58.30% 34.23% 5.34% 39.57% 18.73% 0.39% 0.87% 19.21% 6.64% 12.57% 150 28.1% -13 -4.8% 202 20.1% -794 -100.0% 1070 245.4% 615 20.2% 1693 15.7% Other Net income Net income available to common shareholders -0.01% 14.39% 0.00% 12.57% 14.39% 12.57% Vertical Analysis-BALANCE SHEET 2015 2014 ASSETS Current assets Cash Cash and cash equivalents 12.29% 15.88% Short-term investments 0.65% 1.26% Total cash 12.94% 17.15% Receivables 5.78% 5.87% Inventories 10.49% 10.15% Deferred income taxes 3.07% 2.95% Prepaid expenses 2.68% 2.66% Total current assets 34.98% 38.77% Non-current assets Property, plant and equipment Gross property, plant and equipment 77.47% 79.80% Accumulated Depreciation -44.62% -47.08% Net property, plant and equipment 32.85% 32.73% Equity and other investments 5.34% 7.75% Goodwill 12.65% 7.96% Intangible assets 4.18% 2.55% Deferred income taxes 6.66% 8.40% Other long-term assets 3.34% 1.85% Total non-current assets 65.02% 61.23% 100.00 100.00 Total assets % % LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Current liabilities Accounts payable 5.50% 4.97% Taxes payable 2.08% 2.53% Accrued liabilities 9.68% 9.33% Deferred revenues 0.00% 7.38% Other current liabilities 12.10% 4.05% Total current liabilities 29.36% 28.26% Non-current liabilities Long-term debt Deferred revenues Minority interest Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity 18.87% 19.05% 0.02% 5.02% 23.90% 53.25% 0.02% 3.65% 22.71% 50.97% 0.02% 0.33% 48.01% -1.60% 46.75% 100.00 % 0.01% 0.36% 48.42% 0.23% 49.03% 100.00 % INCOME STATEMENT Revenue Cost of revenue Gross profit Operating expenses Sales, General and administrative Other operating expenses Total operating expenses Operating income Interest Expense Other income (expense) Income before taxes Provision for income taxes Net income from continuing operations Other Net income Net income available to common shareholders Earnings per share Basic Diluted 2015 19163 7788 11375 2014 16448 6859 9589 6608 1166 7774 3601 70 372 3903 1144 2759 -2 2757 2757 5630 878 6508 3081 64 143 3160 1092 2068 0 2068 2068 1.84 1.82 1.38 1.35 BALANCE SHEET Assets Current assets Cash Cash and cash equivalents Short-term investments Total cash Receivables Inventories Deferred income taxes Prepaid expenses Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Deferred income taxes Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Non-current liabilities Long-term debt Deferred revenues Minority interest Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total stockholders' equity 2015 2014 1530 81 1611 719 1306 382 334 4353 1708 135 1844 631 1091 317 286 4169 9642 -5554 4088 664 1575 520 829 416 8093 12446 8581 -5062 3519 833 856 274 903 199 6584 10753 684 259 1205 1506 3654 534 272 1003 794 436 3039 2348 2048 2 625 2975 6628 2 392 2442 5481 2 41 5975 -199 5818 1 39 5207 25 5272 Total liabilities and stockholders' equity 12446 10753 Horizontal Analysis- INCOME STATEMENT Revenue Cost of revenue Gross profit Operating expenses Sales, General and administrative Other operating expenses Total operating expenses Operating income Interest Expense Other income (expense) Income before taxes Provision for income taxes Net income from continuing operations Other Net income Net income available to common shareholders Earnings per share Basic Diluted change 2715 929 1786 % age change 16.51% 13.54% 18.63% 2015 19163 7788 11375 2014 16448 6859 9589 6608 1166 7774 3601 70 372 3903 1144 2759 -2 2757 2757 5630 878 6508 3081 64 143 3160 1092 2068 0 2068 2068 978 17.37% 288 32.80% 1266 19.45% 520 16.88% 6 9.38% 229 160.14% 743 23.51% 52 4.76% 691 33.41% -2 0.00% 689 33.32% 689 33.32% 1.84 1.82 1.38 1.35 0.46 0.47 33.33% 34.81% Horizontal Analysis-BALANCE SHEET 2015 2014 change % age change Total current assets 1530 81 1611 719 1306 382 334 4353 1708 135 1844 631 1091 317 286 4169 -178 -54 -233 88 215 65 48 184 -10.4% -40.0% -12.6% 13.9% 19.7% 20.5% 16.8% 4.4% Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Deferred income taxes Other long-term assets Total non-current assets 9642 -5554 4088 664 1575 520 829 416 8093 8581 -5062 3519 833 856 274 903 199 6584 1061 -492 569 -169 719 246 -74 217 1509 12.4% 9.7% 16.2% -20.3% 84.0% 89.8% -8.2% 109.0% 22.9% Total assets 12446 10753 1693 15.7% 684 259 1205 1506 3654 534 272 1003 794 436 3039 150 -13 202 -794 1070 615 28.1% -4.8% 20.1% -100.0% 245.4% 20.2% 2348 2048 300 14.6% 2 625 2975 2 392 2442 0 233 533 0.0% 59.4% 21.8% 6628 5481 1147 20.9% 2 41 5975 -199 1 39 5207 25 1 2 768 -224 100.0% 5.1% 14.7% -896.0% ASSETS Current assets Cash Cash and cash equivalents Short-term investments Total cash Receivables Inventories Deferred income taxes Prepaid expenses LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Current liabilities Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Non-current liabilities Long-term debt Deferred revenues Minority interest Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total stockholders' equity 5818 5272 546 10.4% Total liabilities and stockholders' equity 12446 10753 1693 15.7% Vertical Analysis- INCOME STATEMENT Revenue Cost of revenue 2015 2014 100.00% 100.00% 40.64% 41.70% Gross profit 59.36% 58.30% Operating expenses Sales, General and administrative Other operating expenses Total operating expenses Operating income Interest Expense Other income (expense) Income before taxes Provision for income taxes Net income from continuing operations Other Net income Net income available to common shareholders 34.48% 6.08% 40.57% 18.79% 0.37% 1.94% 20.37% 5.97% 14.40% -0.01% 14.39% 14.39% 34.23% 5.34% 39.57% 18.73% 0.39% 0.87% 19.21% 6.64% 12.57% 0.00% 12.57% 12.57% Vertical Analysis-BALANCE SHEET 2015 2014 Total current assets 12.29% 0.65% 12.94% 5.78% 10.49% 3.07% 2.68% 34.98% 15.88% 1.26% 17.15% 5.87% 10.15% 2.95% 2.66% 38.77% Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Deferred income taxes Other long-term assets Total non-current assets 77.47% -44.62% 32.85% 5.34% 12.65% 4.18% 6.66% 3.34% 65.02% 79.80% -47.08% 32.73% 7.75% 7.96% 2.55% 8.40% 1.85% 61.23% ASSETS Current assets Cash Cash and cash equivalents Short-term investments Total cash Receivables Inventories Deferred income taxes Prepaid expenses Total assets 100.00% 100.00% LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Current liabilities Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Non-current liabilities Long-term debt Deferred revenues Minority interest Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total stockholders' equity 5.50% 2.08% 9.68% 0.00% 12.10% 29.36% 4.97% 2.53% 9.33% 7.38% 4.05% 28.26% 18.87% 19.05% 0.02% 5.02% 23.90% 53.25% 0.02% 3.65% 22.71% 50.97% 0.02% 0.33% 48.01% -1.60% 46.75% 0.01% 0.36% 48.42% 0.23% 49.03% Total liabilities and stockholders' equity 100.00% 100.00%