Review the current financial statements of Starbucks through Yahoo! Finance

Reviewing the previous quarters financial statements will provide you with data to construct pro forma financial statements for Starbucks and make some basic projections. This week, you will be charged with constructing two pro forma financial statements and addressing some questions about your projections. The two financial statements will include an Income Statement and Balance Sheet.

Use the Yahoo! Finance database to download the last 10-Q from Starbucks into Excel. Use the downloaded data to complete an Income Statement and Balance Sheet. 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.

Note: 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.