Starbucks Case Analysis

Name: ___________________________________________________

Directions:

i.Item 1 is to be completed in Excel, following the instructions below. Note that Excel formulas must be used for all computations. Credit cannot be awarded for manually-entered amounts. Contact me if you need assistance with creating Excel formulas.

ii.For items 2 through 10, enter your responses into this document, directly under each respective question. Referenced financial information can be found in the StarbucksFinancials PDF file in the Starbucks Assignment in Blackboard (Bb).

iii.Present your answers in complete, well-constructed sentences, and be concise and to the point in your responses.

iv.Save both files using filename: last name_Starbucks

v.Upload your completed files to the Starbucks Assignment in Blackboard (Bb).

1.Follow directions on p. 1-27 in textbook, or on the last few slides in the Module 1 PPT to download Starbucks' income statement and balance sheet for fiscal 2013 (the year ended September 29, 2013). Financial statements for public companies are reported to shareholders in their annual reports, also called Form 10-K.

Use the downloaded Excel spreadsheets to construct common-size income statements (Starbucks calls them statements of earnings) and balance sheets for both 2013 and 2012. (Information for both years will be found on the fiscal 2013 statements.)

Common-size income statements scale each income statement line item by total net revenues (sales).

Common-size balance sheets are created by dividing each figure on a given year's balance sheet by that year's total assets, thereby creating a balance sheet on a "percent of assets" basis. Note that event liability and stockholders' equity items are to be presented/computed on a "percent of assets" basis.

Refer to the fiscal 2013 balance sheet (for the year ended September 29, 2013) to respond to the following items.

2.(a) Write out the Accounting Equation and

(b) demonstrate that the accounting equation holds true for Starbucks.