I am having troubling trying to figure out this question:

Not all costs are associated with the cost of sales. It will be up to you to determine which line items need to be increased and which ones need to be left alone. This will require you to distinguish between fixed and variable costs.

Within each line item expense explain your rationale, as well as provide a brief summary.

Here is what I formulated:

STARBUCKS PROFORMA INCOME STATEMENT Starbucks Corp. Consolidated Income Statement Quarterly Data US$ in thousands Company-operated stores Licensed stores Other Net revenues Cost of sales Gross profit Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Restructuring and impairments Litigation credit Income from equity investees Operating income Gain resulting from acquisition of joint venture Net gain (loss) resulting from divestiture of certain operations Loss on extinguishment of debt Interest income and other, net Interest expense Earnings before income taxes Income tax expense Net earnings including noncontrolling interests Net (earnings) loss attributable to noncontrolling interests Net earnings attributable to Starbucks Mar 29, 2020 Dec 29, 2019 % change at 12/29/19 to 3/31/20 29-Jun-20 $ 4,766,000.00 $ 5,780,700.00 -17.55% $ 3,929,412.70 $ 689,800.00 $ 792,000.00 -12.90% $ 600,787.93 $ 539,900.00 $ 524,400.00 2.96% $ 555,858.14 $ 5,995,700.00 $ 7,097,100.00 -15.52% $ 5,065,226.43 $ (1,997,700.00) $ (2,236,400.00) -10.67% $(1,784,477.41) $ 3,998,000.00 $ 4,860,700.00 -17.75% $ 3,288,416.07 $ 12,721,400.00) S (2,821,500.00) 3.55% $ (2,624,851.31) $ (95,000.00) $ (101,800.00) -6.68% $ (88,654.22) $ 356,300.00) 5 (351,000.00) 1.51% $ (361,680.03) $ (406,500.00) $ (434,200.00) 6.38% $ (380,567.13) $ 700.00 $ (6,300.00) -111.11% $ (77.78) $ $ #DIV/0! #DIV/0! $ 67,900.00 $ 73,900.00 -8.12% $ 62,387.14 $ 487,400.00 $ 1,219,800.00 -60.04% $ 194,752.22 $ $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ $ $ $ $ $ $ $ 2,000.00 $ 15,900.00 199,200.00) $ (91,900.00) 390,200.00 $ 1,143,800.00 (65,400.00) $ (258,500.00) 324,800.00 $ 885,300.00 #DIV/0! #DIV/0! -87.42% $ 251.57 7.94% $ (107,079.87) -65.89% $ 133,114.22 -74.70% $ (16,546.07) -63.31% 119,163.04 400.00 $ $ 3,600.00 $ 328,400.00 $ 800.00% $ -62.92% $ 32,400.00 121,764.21 885,700.00 PROFORMA BALANCE SHEET Starbucks Corp. Consolidated Balance Sheet: Assets Quarterly Data US$ in thousands Mar 29, 2020 Dec 29, 2019 % change at 12/29/19 to 3/31/20 29-Jun-20 -15.40% $ 2,176, 197.10 -22.66% $ 40,912.43 3.62% $ 975,091.95 5.93% $ 1,580,649.42 45.89% $ 1,008,802.22 #DIV/O! Cash and cash equivalents $ 2,572,300.00 $ 3,040,500.00 Short-term investments $ 52,900.00 $ 68,400.00 Accounts receivable, net $ 941,000.00 $ 941,000.00 $ 908,100.00 Inventories $ 1,492,200.00 $ 1,408,700.00 Prepaid expenses and other current assets $ 691,500.00 $ 474,000.00 Deferred income taxes, net $ $ Current assets $ 5,749,900.00 $ 5,899,700.00 Long-term investments $ 198,800.00 S 199.800.00 Equity investments $ 420,900.00 $ 411,300.00 Property, plant and equipment, net $ 6,387,000.00 $ 6,390,900.00 Operating lease, right-of- use asset $ 8,260,800.00 $ 8,358,500.00 Deferred income taxes, net $ 1,709,700.00 $ 1,731,400.00 Other long-term assets $ 580,100.00 $ 484,700.00 Other intangible assets $ 678,700.00 $ 739,100.00 Goodwill $ 3,493,000.00 $ 3,515,900.00 Long-term assets $ 21,729,000.00 $ 21,831,600.00 Total assets $ 27,478,900.00 $ 27,731,300.00 #DIV/0! -2.54% $ 5,603,903.59 -0.50% $ 197,805.01 430,724.07 2.33% -0.06% $ 6,383,102.38 - 1.17% $ 8,164,241.99 -1.25%$ 1,688,271.97 19.68% S 694,276.89 -3.17% $ 623,235.95 -0.65%$ 3,470,249.15 -0.47% $ 21,626,882.18 -0.91% $ 27,228,797.25 Based on: 10-Q (filing date: 2020-04-28), 10-Q/filing date: 2020-01-28), 10-K filing date: 2019-11-15), 10-Q ffiling date: 2019-07-301.10-Q (Filing date: 2019-04-30), 10-Q (Filing date: 2019-01-29), 10-K (Filingda Starbucks Corp. Consolidated Balance Sheet: Liabilities and Stockholders' Equity Quarterly Data US$ in thousands Mar 29, 2020 Dec 29, 2019 % change at 12/29/19 to 3/31/20 29-Jun-20 -8.10% $ 916,917.18 -6.03% $ 1,446,160.09 3.04% $ 614,235.45 93.87% $ 5,316.05 -1.21% $ 1,238,286.90 -15 22% S 1,217,730.77 122.35%$ 2,461,679.88 150.53%$ 3,130,139.08 -4.72% $ 7,875,448.06 9.44% $ 12,759, 103.90 Accounts payable s 997,700.00 $ 1,085,600.00 Accrued liabilities $ 1,539,000.00 $ 1,637,800.00 Accrued payroll and benefits $ 596,100.00 $ 578,500.00 Income taxes payable $ 86,700.00 $ 1,414,000.00 Current portion of Operating lease liability $ 1,253,500.00 $ 1,268,900.00 Store value card liability and current portion of deferred revenue $ 1,436,300.00 $ 1,694,100.00 Short-term debt $ 1,107,100.00 S 497,900.00 Current portion of long- term debt $ 1,249,400.00 $ 498,700.00 Current liabilities $ 8,265,800.00 $ 8,675,500.00 Long-term debt excluding current portion $ 11,658,700.00 $ 10,653,200.00 Operating lease liability, excluding current portion $ 7,650,400.00 $ 7,711,700.00 Deferred revenue $ 6,685,500.00 $ 6,748,800.00 Other long-term liabilities $ 751,400.00 $ 701,200.00 Long-term liabilities $ 26,746,000.00 $ 25,814.900,00 Total liabilities $ 35,011,800.00 $ 34,490,400.00 Common stock: 50.001 par value s 1,200.00 s 1,200.00 Additional paid in capital $ 41,100.00 $ 41,100.00 Retained earnings (deficit) $ (7,050,600.00) $ (6,414,800.00) Accumulated other comprehensive income lloss) $ (521,800.00) $ (387,400.00) Shareholders' equity (deficit) $ (7,530,100.00) $ (6,759,900.00) -0.79% $ 7,589,587.27 -0.94% S 6,622,793.72 7.16% S 805.193.90 3.61% $ 27,710,683.21 1.51% $35,541,082.13 0.00% 1,200.00 0.00% S 41,100.00 9.91% S (7,749,417.03) 34.69% 5 (702,827.16) 11.39% $ (8,388,053.971 450.00% $ 9,800.00 11.45% $ (8,395,286.71) Noncontrolling interests $ 12.800.00 $ 800.00 Total equity (deficit) $ (7,532,900.00) $ (6,759,100.00) Total liabilities and equity (deficit) $ 27,478,900.00 $ 27,731,300.00 -0.91% $ 27,228,797.25 Based on: 10-Q (filing date: 2020-04-28), 10-Q filing date: 2020-01-28), 10-Kiling date: 2019-11-15). 10-Q (Filing date: 2019-07-30). 10-Q (Filing date: 2019-04-30), 10-Q [filing date: 2019-01-29), 10-K filing dat STARBUCKS PROFORMA INCOME STATEMENT Starbucks Corp. Consolidated Income Statement Quarterly Data US$ in thousands Company-operated stores Licensed stores Other Net revenues Cost of sales Gross profit Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Restructuring and impairments Litigation credit Income from equity investees Operating income Gain resulting from acquisition of joint venture Net gain (loss) resulting from divestiture of certain operations Loss on extinguishment of debt Interest income and other, net Interest expense Earnings before income taxes Income tax expense Net earnings including noncontrolling interests Net (earnings) loss attributable to noncontrolling interests Net earnings attributable to Starbucks Mar 29, 2020 Dec 29, 2019 % change at 12/29/19 to 3/31/20 29-Jun-20 $ 4,766,000.00 $ 5,780,700.00 -17.55% $ 3,929,412.70 $ 689,800.00 $ 792,000.00 -12.90% $ 600,787.93 $ 539,900.00 $ 524,400.00 2.96% $ 555,858.14 $ 5,995,700.00 $ 7,097,100.00 -15.52% $ 5,065,226.43 $ (1,997,700.00) $ (2,236,400.00) -10.67% $(1,784,477.41) $ 3,998,000.00 $ 4,860,700.00 -17.75% $ 3,288,416.07 $ 12,721,400.00) S (2,821,500.00) 3.55% $ (2,624,851.31) $ (95,000.00) $ (101,800.00) -6.68% $ (88,654.22) $ 356,300.00) 5 (351,000.00) 1.51% $ (361,680.03) $ (406,500.00) $ (434,200.00) 6.38% $ (380,567.13) $ 700.00 $ (6,300.00) -111.11% $ (77.78) $ $ #DIV/0! #DIV/0! $ 67,900.00 $ 73,900.00 -8.12% $ 62,387.14 $ 487,400.00 $ 1,219,800.00 -60.04% $ 194,752.22 $ $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ $ $ $ $ $ $ $ 2,000.00 $ 15,900.00 199,200.00) $ (91,900.00) 390,200.00 $ 1,143,800.00 (65,400.00) $ (258,500.00) 324,800.00 $ 885,300.00 #DIV/0! #DIV/0! -87.42% $ 251.57 7.94% $ (107,079.87) -65.89% $ 133,114.22 -74.70% $ (16,546.07) -63.31% 119,163.04 400.00 $ $ 3,600.00 $ 328,400.00 $ 800.00% $ -62.92% $ 32,400.00 121,764.21 885,700.00 PROFORMA BALANCE SHEET Starbucks Corp. Consolidated Balance Sheet: Assets Quarterly Data US$ in thousands Mar 29, 2020 Dec 29, 2019 % change at 12/29/19 to 3/31/20 29-Jun-20 -15.40% $ 2,176, 197.10 -22.66% $ 40,912.43 3.62% $ 975,091.95 5.93% $ 1,580,649.42 45.89% $ 1,008,802.22 #DIV/O! Cash and cash equivalents $ 2,572,300.00 $ 3,040,500.00 Short-term investments $ 52,900.00 $ 68,400.00 Accounts receivable, net $ 941,000.00 $ 941,000.00 $ 908,100.00 Inventories $ 1,492,200.00 $ 1,408,700.00 Prepaid expenses and other current assets $ 691,500.00 $ 474,000.00 Deferred income taxes, net $ $ Current assets $ 5,749,900.00 $ 5,899,700.00 Long-term investments $ 198,800.00 S 199.800.00 Equity investments $ 420,900.00 $ 411,300.00 Property, plant and equipment, net $ 6,387,000.00 $ 6,390,900.00 Operating lease, right-of- use asset $ 8,260,800.00 $ 8,358,500.00 Deferred income taxes, net $ 1,709,700.00 $ 1,731,400.00 Other long-term assets $ 580,100.00 $ 484,700.00 Other intangible assets $ 678,700.00 $ 739,100.00 Goodwill $ 3,493,000.00 $ 3,515,900.00 Long-term assets $ 21,729,000.00 $ 21,831,600.00 Total assets $ 27,478,900.00 $ 27,731,300.00 #DIV/0! -2.54% $ 5,603,903.59 -0.50% $ 197,805.01 430,724.07 2.33% -0.06% $ 6,383,102.38 - 1.17% $ 8,164,241.99 -1.25%$ 1,688,271.97 19.68% S 694,276.89 -3.17% $ 623,235.95 -0.65%$ 3,470,249.15 -0.47% $ 21,626,882.18 -0.91% $ 27,228,797.25 Based on: 10-Q (filing date: 2020-04-28), 10-Q/filing date: 2020-01-28), 10-K filing date: 2019-11-15), 10-Q ffiling date: 2019-07-301.10-Q (Filing date: 2019-04-30), 10-Q (Filing date: 2019-01-29), 10-K (Filingda Starbucks Corp. Consolidated Balance Sheet: Liabilities and Stockholders' Equity Quarterly Data US$ in thousands Mar 29, 2020 Dec 29, 2019 % change at 12/29/19 to 3/31/20 29-Jun-20 -8.10% $ 916,917.18 -6.03% $ 1,446,160.09 3.04% $ 614,235.45 93.87% $ 5,316.05 -1.21% $ 1,238,286.90 -15 22% S 1,217,730.77 122.35%$ 2,461,679.88 150.53%$ 3,130,139.08 -4.72% $ 7,875,448.06 9.44% $ 12,759, 103.90 Accounts payable s 997,700.00 $ 1,085,600.00 Accrued liabilities $ 1,539,000.00 $ 1,637,800.00 Accrued payroll and benefits $ 596,100.00 $ 578,500.00 Income taxes payable $ 86,700.00 $ 1,414,000.00 Current portion of Operating lease liability $ 1,253,500.00 $ 1,268,900.00 Store value card liability and current portion of deferred revenue $ 1,436,300.00 $ 1,694,100.00 Short-term debt $ 1,107,100.00 S 497,900.00 Current portion of long- term debt $ 1,249,400.00 $ 498,700.00 Current liabilities $ 8,265,800.00 $ 8,675,500.00 Long-term debt excluding current portion $ 11,658,700.00 $ 10,653,200.00 Operating lease liability, excluding current portion $ 7,650,400.00 $ 7,711,700.00 Deferred revenue $ 6,685,500.00 $ 6,748,800.00 Other long-term liabilities $ 751,400.00 $ 701,200.00 Long-term liabilities $ 26,746,000.00 $ 25,814.900,00 Total liabilities $ 35,011,800.00 $ 34,490,400.00 Common stock: 50.001 par value s 1,200.00 s 1,200.00 Additional paid in capital $ 41,100.00 $ 41,100.00 Retained earnings (deficit) $ (7,050,600.00) $ (6,414,800.00) Accumulated other comprehensive income lloss) $ (521,800.00) $ (387,400.00) Shareholders' equity (deficit) $ (7,530,100.00) $ (6,759,900.00) -0.79% $ 7,589,587.27 -0.94% S 6,622,793.72 7.16% S 805.193.90 3.61% $ 27,710,683.21 1.51% $35,541,082.13 0.00% 1,200.00 0.00% S 41,100.00 9.91% S (7,749,417.03) 34.69% 5 (702,827.16) 11.39% $ (8,388,053.971 450.00% $ 9,800.00 11.45% $ (8,395,286.71) Noncontrolling interests $ 12.800.00 $ 800.00 Total equity (deficit) $ (7,532,900.00) $ (6,759,100.00) Total liabilities and equity (deficit) $ 27,478,900.00 $ 27,731,300.00 -0.91% $ 27,228,797.25 Based on: 10-Q (filing date: 2020-04-28), 10-Q filing date: 2020-01-28), 10-Kiling date: 2019-11-15). 10-Q (Filing date: 2019-07-30). 10-Q (Filing date: 2019-04-30), 10-Q [filing date: 2019-01-29), 10-K filing dat