Specific Background of Financial Reporting Project, Part 4: Achieving high accounting quality begins with management. Managers' choices and estimates within U.S. GAAP or IFRS should be determined by firms' underlying economic circumstances, including conditions in their industry, competitive strategy, and technology. To obtain quality accounting information, management should select the accounting principles that best portray the economics of their activities from the set permitted. Quality of accounting data is based on the information management provide in the balance sheet, income statement, statement of cash flows, footnotes to the financial statements, and in the management discussion and analysis.

In parts 1, 2, and 3 you analyzed financial data that companies including Starbucks will generally provide to users. However, the usefulness of such information is limited. For this reason, to determine the overall quality of the data presented, analysts use additional measures.

Required:

1. Based on Starbucks financial statements, calculate the following:Days' Sales in Receivable Index (DSRI)
2. Gross Margin Index (GMI)
3. Asset Quality Index (AQI)
4. Sales Growth Index (SGI)
5. Depreciation Index (DEPI)
6. Selling and Administrative Expense Index (SAI)
7. Leverage Index (LVGI)
8. Total Accruals to Total Assets (TATA)
9. Based on the financial quality factors calculated above, compute Beneish's Manipulation Index.
10. Using the Beneish's Manipulation Index and the reported financial information and disclosures, present a discussion and analysis of the overall accounting quality of Starbucks.