Description

Organizational Analysis & Design Plan: Project Description and Scoring Guide Specifically the following critical elements must be addressed: Introduction: Provide a concise, professional introduction explaining the purpose of your analysis to your executive. Horizontal and Vertical Analysis: In this section, you will conduct horizontal and vertical analyses for the balance sheet and income statement accounts and report any significant observations for a two-year period. You should include a table of your calculations as an appendix to your analysis. Include all calculations in an Excel document. Specifically discuss the following categories: Accounts Receivable: Use basic financial analysis to examine any horizontal changes in Starbucks’ accounts receivable balances over time. 

Use basic financial analysis to examine any vertical changes in Starbucks’ accounts receivable balances over time. Analyze how Starbucks’ methods for accounting for receivables and evaluating uncollectible receivables impact the recording process and presentation of financial statements. In other words, what are this company’s methods for accounting for receivables and evaluating uncollectible receivables, and how do those affect how financial information is communicated? Asset Acquisition, Depreciation, and Amortization: Use basic financial analysis to examine any horizontal changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization over time. Use basic financial analysis to examine any vertical changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization over time. Analyze Starbucks’ methods for fixed asset and intangible asset acquisitions as well as depreciation and amortization, including asset categorization. How do these methods affect the balance sheet, income statement, and statement of cash flows? Debt Financing Use basic financial analysis to examine any horizontal changes in Starbucks’ short- and long-term debt over time. Use basic financial analysis to examine any vertical changes in Starbucks’ short- and long-term debt over time. Analyze Starbucks’ method of debt financing. In your analysis, you should address both current and long-term liabilities, including the issuance of bonds. Ratio Analysis: Analyze and discuss the financial performance of Starbucks using financial ratios. Include your calculations and amounts in a table in the appendix of your paper. Be sure to show your calculation for each ratio. Liquidity Ratios Accurately present and calculate two liquidity ratios for Starbucks. Discuss what the liquidity ratios reveal about Starbucks, including any description of benchmarks, standard measurements, or other types of analysis used once the ratio amount is known. Solvency Ratios Accurately present and calculate two solvency ratios for Starbucks. Discuss what the solvency ratios reveal about the company, including any description of benchmarks, standard measurements, or other types of analysis used once the ratio amounts are known. Profitability Ratios Organizational Analysis & Design Plan: Project Description and Scoring Guide1. Accurately present and calculate two profitability ratios for Starbucks. 2. Discuss what the profitability ratios reveal about the company, including any description of benchmarks, standard measurements, or other types of analysis used once the ratio amounts are known.

 Rules of Financial Reporting: Consider the following governmental and GAAP reporting requirements for what is mandated that Starbucks include in its financial statements: Why is the reporting of control procedures required, and what information is disclosed about Starbucks’ control procedures? Justify your response. Why is the reporting of segment information required, and what information is disclosed about Starbucks’ segment information? Justify your response. Why is the reporting of estimates and assumptions required, and what information is disclosed about Starbucks’ reporting of estimates and assumptions? Justify your response. Why is the reporting of investments and fair value required, and what information is disclosed about Starbucks’ investments and fair value reporting? Justify your response. Why is the reporting of leases required, and what information is disclosed about Starbucks’ lease structure? Justify your response.

 Conclusion: Provide a concise, professional conclusion to your executive detailing the findings of your analysis. What can you learn from Starbucks’ financial statements and performance about determining the overall health of companies? Include general suggestions for financial improvements. Organizational Analysis & Design Plan: Project Description and Scoring Guide For this milestone, you will be analyzing the financial performance of Starbucks using the financial ratios of liquidity, solvency, and profitability (Critical Element III). Include your calculations and amounts in a table in the appendix of your paper. Be sure to show your calculations for each ratio. You will also discuss what each ratio and ratio category tells the user about the financial health of the company, including stating appropriate methods for comparison such as benchmarking and trend analysis. Your analysis should be in the form of a 2–3-page paper. Include all calculations in an Excel document. Note: To calculate the ratio amounts you may use the document Key Financial Ratios Explained and Set Up in Excel