You need to analyze the Company Starbucks, Inc. Report structure and requirements: a. An analysis overview which
Question:
You need to analyze the Company "Starbucks, Inc."
Report structure and requirements:
a. An analysis overview which includes background information of the company and the industry. This should include:
i. A summary of the firm's history
ii. The firm's main customer and competition
iii. Information on top management and management compensation (if available).
iv. Anything else you feel is important.
b. A summary of the firm's business strategy.
c. A financial analysis which should include:
i. Analysis of short-term liquidity and longer-term solvency.
ii. Analysis of asset efficiency (e.g., turnover)
iii. Analysis of profitability.
iv. Analysis of cash flow.
d. Accounting analysis that evaluates the firms earning's quality. This should include commentary on any earning's management that appears to be present along with an analysis of the relative aggressiveness of the accounting choices. Some things to look for are the adequacy of the allowance for bad debts, whether asset lives appear reasonable, any phantom profits from LIFO reserve liquidations, or hidden debt from items such as operating leases.
e. A valuation of the firm's stock price per share. You may use any method you wish, however you must defend your choice.
f. A conclusion including your recommendation regarding the stock.
g. A bibliography that reveals all sources of information you used. It is perfectly acceptable to use public information, however it must be cited.
Step by Step Answer:
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom