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Create a Pro Forma Income Statement and Balance Sheet for Starbucks using the last quarter 10Q. Assume the following: Sales will increase for the next
Create a Pro Forma Income Statement and Balance Sheet for Starbucks using the last quarter 10Q. Assume the following:
- Sales will increase for the next quarter by the same percentage increase from the previous quarter to the last reported quarter. For example, if sales increased 8% from the last quarter to the current reported quarter, you will use 8% as the sales increase for your pro formas.
- Calculate the expenses to determine what will change and what will remain the same.
- Within each line item expense explain your rationale, as well as provide a brief summary.
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 2,572.3 | $ 2,686.6 |
Short-term investments | 52.9 | 70.5 |
Accounts receivable, net | 941 | 879.2 |
Inventories | 1,492.2 | 1,529.4 |
Prepaid expenses and other current assets | 691.5 | 488.2 |
Total current assets | 5,749.9 | 5,653.9 |
Long-term investments | 198.8 | 220 |
Equity Investments | 420.9 | 396 |
Property, plant and equipment, net | 6,387 | 6,431.7 |
Operating Lease, Right-of-Use Asset | 8,260.8 | 0 |
Deferred income taxes, net | 1,709.7 | 1,765.8 |
Other long-term assets | 580.1 | 479.6 |
Other intangible assets | 678.7 | 781.8 |
Goodwill | 3,493 | 3,490.8 |
TOTAL ASSETS | 27,478.9 | 19,219.6 |
Current liabilities: | ||
Accounts payable | 997.7 | 1,189.7 |
Accrued liabilities | 1,539 | 1,753.7 |
Employee-related Liabilities, Current | 596.1 | 664.6 |
Accrued Income Taxes, Current | 86.7 | 1,291.7 |
Operating Lease, Liability, Current | 1,253.5 | 0 |
Deferred Revenue, Current | 1,436.3 | 1,269 |
Short-term Debt | 1,107.1 | 0 |
Current portion of long-term debt | 1,249.4 | 0 |
Total current liabilities | 8,265.8 | 6,168.7 |
Long-term debt | 11,658.7 | 11,167 |
Operating Lease, Liability, Noncurrent | 7,650.4 | 0 |
Deferred Tax and Other Liabilities, Noncurrent | 751.4 | 1,370.5 |
Total liabilities | 35,011.8 | 25,450.6 |
Shareholders' equity: | ||
Common stock ($0.001 par value) authorized, 2,400.0 shares; issued and outstanding, 1,457.2 shares and 1,460.5 shares, respectively | 1.2 | 1.2 |
Additional paid-in capital | 41.1 | 41.1 |
Retained earnings | (7,050.6) | (5,771.2) |
Accumulated other comprehensive loss | (521.8) | (503.3) |
Total shareholders' equity | (7,530.1) | (6,232.2) |
Noncontrolling interests | (2.8) | 1.2 |
Total equity | (7,532.9) | (6,231) |
TOTAL LIABILITIES AND EQUITY | $ 27,478.9 | $ 19,219.6 |
Authorized shares of common stock | 2,400,000,000 | 2,400,000,000 |
Par value of common stock | $ 0.001 | $ 0.001 |
Commercial Paper [Member] | ||
Current liabilities: | ||
Short-term Debt | $ 1,100 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 29, 2020 | Sep. 29, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 2,400,000,000 | 2,400,000,000 |
Common stock, shares issued | 1,168,100,000 | 1,184,600,000 |
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