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Reviewing the previous quarter s financial statements will provide you with data to construct pro forma financial statements for Starbucks and make some basic projections.
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, your task will be to construct two pro forma financial statements and address some questions about your projections. The two financial statements will include an Income Statement andCalculate the expenses to determine what will change and what will remain the same.
Summarize your rationale, within each line item expense.
Assume that 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 from the last quarter to the current reported quarter, you will use as the sales increase for your pro formas.
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. Balance Sheet.
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