STEP #1: Print out the "Consolidated Balance Sheets", the "Consolidated Statements of Earnings" and the "Consolidated Statements of Cash Flows" of the Starbucks Corporation for the years of 2019 and 2020. The annual reports for 2019 and 2020 can be found at this website. The financial statements for 2020 can be found on pgs. 47 - 50 of the 2020 annual report and the financial statements for 2019 can be found on pgs. 44 - 47 of the 2019 annual report. STEP #2: (15 pts.) Complete a "Horizontal Analysis" of the Starbucks Corporation's Consolidated Balance Sheets and Consolidated Statements of Earnings. Use 2020 as the "Analysis Period" and 2019 as the "Base Period" (the terms "analysis period" and "base period" are explained in Chapter 13 of your textbook). Use Word or Excel to complete this horizontal analysis. Provide an analysis of what your horizontal analysis reveals about the Starbucks Corporation's financial position and profitability. EXAMPLE (See pg. 500 of your textbook) APPLE INC. Comparative Year-End Balance Sheets $ millions Current Yr Prior Yr Dollar Change Percent Change Assets Cash and cash equivalents $ 20.289 $ 20,484 (195) (1.0)% Short-term marketable securities. 53,892 46,671 7,221 15.5 Accounts receivable, net . 17.874 15,754 2,120 13.5 Inventories . . . . . . . . 4,855 2,132 2,723 127.7 Vendor non-trade receivables . 17,799 3,545 4,254 31.4 Other current assets. 13,936 8,283 5,653 68.2 Total current assets 128,645 106,869 21,776 20.4 Long-term marketable securities. . 194.714 170,430 24,284 14.2 Property, plant and equipment, net. 33,783 27.010 6,773 25.1 Goodwill . . . 5.717 5,414 303 5.6 Acquired intangible assets, net . 2,298 3,206 (908) (28.3) Other non-current assets . 10,162 8,757 1,405 16.0 Total assets . . . $375,319 $321,686 $53,633 16.7 Liabilities Accounts payable . $ 49.049 $ 37,294 $11,755 31.5% Accrued expenses 25,744 22,027 3,717 16.9 Deferred revenue . 7,548 8,080 (532) (6.6) Commercial paper 11,977 8,105 3,872 47.8 Current portion of long-term debt . 6,496 3,500 2,996 85.6 Total current liabilities . 100,814 79,006 21,808 27. Deferred revenue-non-current. 2,836 2,930 (94) (3.2) Long-term debt . . . 97.207 75,427 21,780 28.9 Other non-current liabilities . . 40.415 36,074 4,341 12.0 Total Liabilities 241,272 193,437 47,835 24.7 Stockholders' Equity Common stock 35,867 31,251 4,616 14.8 Retained earnings. 98,330 96,364 1,966 2.0 Accumulated other comprehensive (150) 634 (784) Total stockholders' equity . 134.047 128,249 5,798 4.5 Total liabilities and stockholders' equity . ... $375,319 $321,686 $53,633 16.7
