Getting to Know the Financial Statements - Starbucks
January 2012
STARBUCKS: FROM BEAN TO CUP
Introduction to the Financial Statements
-------------------------------------------------
The purpose of this assignment is to increase your understanding of the information contained in a firm’s financial statements and of the relationship between the statements. As you study financial accounting, we will focus on using financial information in a meaningful way, to understand the firm’s past performance and project its future performance.
One of the analytical tools that we will use is financial ratio analysis. While we will discuss ratios in depth in class, I have included a few financial ratios in the questions below. The last chapter of the text, Chapter 14, contains explanations of the most commonly used ratios in financial analysis.
To complete the assignment, you will need to refer to Starbucks’ financial statements for fiscal year 2011, analysts’ forecasts, your textbook and the Internet (for the last few questions). The financial statements ARE PROVIDED AT THE END OF THIS CASE. For ease of computation, the financial statements can easily be put into spreadsheets.
-------------------------------------------------
Your assignment can be typed or handwritten. You can work on this assignment by yourself or with your study group (consisting of 2 to 3 students). If you work with a group, please turn in only one solution for the group, listing the names of the group members.
In answering the questions below, provide all dollar amounts in thousands to be consistent with the financial statements. When computing percentages, carry all answers out to two decimal places (i.e., 12.34%).
I. Refer to the Starbucks’ Balance Sheet
1. Fill in the following blanks for fiscal year 2010 ($ in millions). | Total Assets = | Total Liabilities + | Shareholders’ Equity | as of 10/2/2011 | 7,360.4 | 2,973.1 | 4,387.3 | as of 10/3/2010 | 6,385.9 | 2,703.6 | 3,682.3 | as of 09/27/2009 | 5,576.8 |
STARBUCKS: FROM BEAN TO CUP
Introduction to the Financial Statements
-------------------------------------------------
The purpose of this assignment is to increase your understanding of the information contained in a firm’s financial statements and of the relationship between the statements. As you study financial accounting, we will focus on using financial information in a meaningful way, to understand the firm’s past performance and project its future performance.
One of the analytical tools that we will use is financial ratio analysis. While we will discuss ratios in depth in class, I have included a few financial ratios in the questions below. The last chapter of the text, Chapter 14, contains explanations of the most commonly used ratios in financial analysis.
To complete the assignment, you will need to refer to Starbucks’ financial statements for fiscal year 2011, analysts’ forecasts, your textbook and the Internet (for the last few questions). The financial statements ARE PROVIDED AT THE END OF THIS CASE. For ease of computation, the financial statements can easily be put into spreadsheets.
-------------------------------------------------
Your assignment can be typed or handwritten. You can work on this assignment by yourself or with your study group (consisting of 2 to 3 students). If you work with a group, please turn in only one solution for the group, listing the names of the group members.
In answering the questions below, provide all dollar amounts in thousands to be consistent with the financial statements. When computing percentages, carry all answers out to two decimal places (i.e., 12.34%).
I. Refer to the Starbucks’ Balance Sheet
1. Fill in the following blanks for fiscal year 2010 ($ in millions). | Total Assets = | Total Liabilities + | Shareholders’ Equity | as of 10/2/2011 | 7,360.4 | 2,973.1 | 4,387.3 | as of 10/3/2010 | 6,385.9 | 2,703.6 | 3,682.3 | as of 09/27/2009 | 5,576.8 |