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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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