Use the same annual statements for Starbucks as for the prior module. The Starbucks income statements should be used for the first two questions. Do additional research as necessary for the last question.
Use the same annual statements for Starbucks as for the prior module. The Starbucks income statements should be used for the first two questions. Do additional research as necessary for the last question.
IBISWorld is a proprietary database providing industry research. It is accessible via the Trident library. The database is found under additional library resources and offers a lot of interesting industry information, including financial information.
Case Assignment
Locate the income statement for the past two years. Prepare a table in good format comparing at least ten revenue and expense items for the two years. Did the numbers increase or decrease? What can we learn from this information?
Comment on the changes from one year to another. Is the company doing better or worse? Did revenues and expenses increase or decrease? Are revenues and expenses moving in the same direction?
How is Starbucks doing vis-à-vis the industry? Use IBISWorld to answer this question.
Investors emphasize earnings per share. Why is this number so important and what are some of the shortcomings of this number?
Assignment Expectations
Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. Incorporate the required table into the Word document. Do not submit a separate spreadsheet. The suggested length is five to seven pages, including the table.
BUS500 Financial Intelligence
Module 3 SLP
INCOME STATEMENT
We reviewed the balance sheet for VWV in the prior module. This time we are examining the income statement for the same entity.
VWV Company
Income Statement
For the Period Ending December 31, 20XX
Revenues
$540,000
Cost of goods sold
200,000
Gross profit
$340,000
Operating expenses
Salaries
$120,000
Lease for office
30,000
Advertising and promotion
24,000
Utilities
9,700
Property taxes
18,000
Payroll taxes
11,500
Insurance
8,000
Depreciation
19,922
Miscellaneous expenses
9,000
Total operating expenses
$250,122
Operating income
$89,878
Interest income
$2,500
Interest expense
12,000
Net interest expense
$9,500
Net income
$80,378
Use the above income statement to answer the questions below.
Is VWV a manufacturer/reseller or a service company?
Explain the term cost of goods sold in your own words. Why is this item significant?
Does the company have employees?
Does the company own some type of property? Can we tell from looking at the income statement alone or do we need to look at the balance sheet too?
Are earnings per share important information for VWV Company?
How is depreciation computed and what is the purpose of including depreciation expense?
How do the dividends affect the income statement?
How do we know that VWV Company is using the accrual basis of accounting? Hint: Do not forget to look at the balance sheet from the prior module.
Why is the company using the accrual basis of accounting rather than the cash basis?
Comment on operating income versus net income.
SLP Assignment Expectations
Use Word and respond in a question-and-answer format. There is no need to use Excel for this particular SLP.
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
