ACC 660 - Milestone One
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Milestone One: Starbucks Case Study
Southern New Hampshire University
ACC 660: Controllership
Gina Smith
December 24, 2023
Financial Indicators and Trend Analysis
Financial Ratios:
Ratio
2010
2011
2012
Current Ratio
1.5493
1.8282
1.9004
Gross Profit Margin
58.3596
57.6997
56.2893
Operating Margin
13.2563
14.773
15.044
Net Profit Margin
8.8313
10.6466
10.4227
ROE - Return on Equity
25.7529
28.4457
27.074
ROA - Return on Assets
14.8499
16.9556
16.8471
Debt/Equity Ratio
0.1492
0.1252
0.1075
Asset Turnover
1.6767
1.5896
1.6153
Operating Cash Flow per Share
0.1844
-0.0681
0.0847
(Macrotrends, 2023) (Starbucks Corporation, 2011) (Starbucks Corporation, 2012) (Starbucks Corporation, 2013)
Starbucks Corporation has maintained predominantly consistent performance ratios. Their Gross Profit Ratio did, however, see a slight dip in 2012. (Macrotrends, 2023) Their revenue increased, and as such, so did the cost of sales. It is possible that it also could be accounted to the several acquisitions that occurred that year. (Starbucks Corporation, 2013) The operating margin increased each of the three years, and was attributed to store sales increases, and sales leverage increases due to higher supply costs. If management is looking to increase gross profits by 4%, the best way would be to reduce the cost of sales by 4%. From 2010 to 2012, the revenue increased by over $2 billion, and the cost of sales increased by over $1 billion.
Revenues have consistently increased year over year, so finding a way to cut costs would be the most logical option. (Starbucks Corporation, 2013)
Starbucks saw a return on assets that increased from 2010 to 2011, but then stayed nearly the same in 2012. (Starbucks Corporation, 2011) There was an over 20% increase in net income
between 2010 and 2011 and an increase in assets over 10%. These numbers in 2012 did not show much change from 2011. The notes on their financials discuss some changes in how assets and income were being documented which likely played a role in the nearly straight line between
2011 and 2012 as to not overstate the final balances. (Starbucks Corporation, 2013)
Horizontal Trend Analysis
See below for a horizontal trend analysis for Starbucks Corporation between 2010 and 2012 and pro-forma 2013 with a 20% increase in coffee inventory. Starbucks Corporation (in millions)
(Starbucks Corporation, 2012)
Interpret Financial Information
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Related Questions
Solve the Following
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solve the two pls
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i need the answer quickly
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perform horizontal analysis
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FINA310 IP TEMPLATE FOR STUDENTS
Student name:
Date:
ACTUAL
FORECAST
Current Year
Next Year
Total Revenue
71,879
|Cost of Revenue
(51,125)
Gross Profit
20,754
Operating Expenses:
Selling, General, and Administrative
(14,248)
Research and Development
Special Income/Other Charges
(2,194)
Total Operating Expenses
(16,442)
Operating Income
4,312
Net Interest Income
(666)
edite
Pre-Tax Income
3,646
Provision for Income Tax (19.5%)
(711)
Net Income
2,935
Additionally, Tag-It's CEO has predicted a 12% increase in total
revenue next year. Utilizing the percentage of sales method, prepare
a forecast for next year in the correct section on the Excel
spreadsheet.
1. The total revenue numbers over the past 4 years for Tag-lt
Corporation were as follows (values in millions):
o 73,785
O 69,495
o 75,356
o 71,879
2. Determine whether you think Tag-It can hit the target of a 12%
increase in sales next year.
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BOARD
ACTIVITY
Instructions:
Horizontal Vertical
Make a Horizontal Analysis
and Vertical Analysis for
2014
2015
Analysis Analysis
Revenue
1,939,500
1,674,675 1.
the given SCI.
Cost of Goods Sold
900,000
843,975
2.
8.
Gross Profit
1,039,500 830,700
10.
Selling and General Expenses 445,500
409,725
ur
Other Expenses
37,575
30,825
giv
5.
11.
Net Income
556,425
390,150
12.
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Helping tag: Accounting
.
.
.
WILL UPVOTE, just pls help me answer the questions. Thanks.
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Requirements
1. Conclusion for company B
2. Recommendation for Company B
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please help me with the answer and steps to solve it
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Make at least 1 insightful observation about what you notice in your analysis.
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Exercise 13-3 (Algo) Computing and analyzing trend percents LO P1
Sales
Cost of goods sold
Accounts receivable.
2021
$ 706,675
363,004
34,274
2020
2019
$464,918 $ 371,9341
238,808 193, 136
27,058
25,477
2018
$ 260,094
133,898
15,268
2017
$ 194, 100
98,991
13,296
Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether
the situation as revealed by the trend percents appears to be favorable or unfavorable.
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EXPLAIN THE IMAGE PROVIDED GIVE RECOMMENDATION
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Calculate the cost efficiency - profit margin ratios
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20
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<
+
..
+
Sheet1
FINA310 IP TEMPLATE FOR STUDENTS
Student name:
Date:
ACTUAL
FORECAST
Current Year
Next Year
Total Revenue
71,879
Cost of Revenue
(51,125)
Gross Profit
20,754
Operating Expenses:
Selling, General, and Administrative
(14,248)
Research and Development
Special Income/Other Charges
S
(2,194)
Total Operating Expenses
(16,442)
Operating Income
S
4,312
Net Interest Income
(666)
edite
Pre-Tax Income
3,646
Provision for Income Tax (19.5%)
(711)
Net Income
2,935
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Problem 13-02A (Video)
The comparative statements of Cullumber Company are presented here:
Cullumber CompanyIncome StatementsFor the Years Ended December 31
2020
2019
Net sales
$1,891,640
$1,751,600
Cost of goods sold
1,059,640
1,007,100
Gross profit
832,000
744,500
Selling and administrative expenses
501,100
480,100
Income from operations
330,900
264,400
Other expenses and losses
Interest expense
23,700
21,700
Income before income taxes
307,200
242,700
Income tax expense
93,700
74,700
Net income
$213,500
$168,000
Cullumber CompanyBalance SheetsDecember 31
Assets
2020
2019
Current assets
Cash
$60,100
$64,200
Debt investments (short-term)
74,000
50,000
Accounts receivable
118,900
103,900
Inventory
127,700
117,200
Total current assets
380,700
335,300
Plant assets (net)…
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GIVE THE COMPARATIVE INCOME STATEMENT VERTICAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW
JOLLIBEE INCOME STATEMENT
ITEM
2016
2017
2018
2019
2020
Sales/Revenue
113.81B
133.61B
161.17B
179.63B
129.31B
Sales Growth
-
17.40%
20.62%
11.45%
-28.01%
Cost of Goods Sold (COGS) incl. D&A
-
-
132.96B
150.88B
115.39B
COGS Growth
-
-
-
13.47%
-23.52%
COGS excluding D&A
89.27B
105.39B
121.08B
137.38B
100.82B
Depreciation & Amortization Expense
4B
4.75B
11.89B
13.5B
14.57B
Depreciation
3.93B
4.66B
11.73B
13.34B
14.32B
Amortization of Intangibles
68.99M
78.95M
151.82M
145.42M
245.23M
Gross Income
20.54B
23.48B
28.21B
28.75B
13.92B
Gross Income Growth
-
14.30%
20.12%
1.93%
-51.57%
Gross Profit Margin
-
-
-
-
10.77%
SG&A Expense
-
-
17.64B
20.21B
20.42B
SGA Growth
-
-
-
14.57%
1.02%…
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Need help with this question
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REQUIREMENTS
1. Recommendation for company A
2. Conclusion for company A
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Problem 1: Viance Queen Company
Required:
Compute for the company’s profitability and operating efficiency ratios for 2019
Compute for the financial health ratios of the company for 2019
B.Operating Efficiency
Days in Inventory
AR Turnover
Days in AR
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WHY THE FORECAST INCOME HSVE DEACLINE IN THE 2022 AND 2023 OF APPLE COMPANY
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QUESTION 7
Р18.3А
P18.ЗА (LO 3)
Jergan Corporation are presented here.
Perform ratio analysis, and discuss changes in financial position and operating results.
Jergan Corporation
Condensed balance sheet and income statement data for
Balance Sheets
December 31
2020
2019
2018
Cash
$ 30,000
$ 20,000
$ 18,000
Accounts receivable (net)
50,000
45,000
48,000
Other current assets
90,000
95,000
64,000
Investments
55,000
70,000
45,000
Plant and equipment (net)
500,000
370,000
358,000
$725,000
$600,000
$533,000
Current liabilities
$ 85,000
$ 80,000
$ 70,000
Long-term debt
Common stock, $10 par
145,000
85,000
50,000
320,000
310,000
300,000
Retained earnings
175,000
125,000
113,000
$725,000
$600,000
$533,000
Jergan Corporation
Income Statements
For the Years Ended December 31
2020
2019
Sales revenue
$740,000
$600,000
Less: Sales returns and allowances
40,000
30,000
Net sales
700,000
570,000
Cost of goods sold
Gross profit
425,000
350,000
275,000
220,000
Operating expenses (including income taxes)…
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C University of Technology and App X
O BAFI2109/BAFI2110: CalculationX
A moodle.nct.edu.om/mod/assign/view.php?id=47174
NCT e-Learning Portal
Courses Reports
e-Services - Academic Departments ETC - CIMS
Soher Humai
REN MOVing Forward
Calculation of Profitability ratios - submission
From the following data, calculate
(a) Gross profit ratio
(b) Net profit ratio
Sales
RO 300,000
Sales returns
RO 10,000
Opening stock
RO 70,000
Closing stock
RO 25,000
Direct expenses
RO 40,000
Purchases
RO 140,000
Net profit
RO 40,000
Share Capital
RO 100,000
Reserve and Surplus RO 25,000
Long term Loans
RO 50,000
Submission status
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QUESTION 8
P18-5A
P14.5A (LO 3)
are presented here (in millions).
Compute selected ratios, and compare liquidity, profitability, and solvency for two
сотрanies.
Suppose selected financial data of Target and Wal-Mart for 2020
Wal-Mart
Target
Corporation Stores, Inc.
Income Statement Data for Year
Net sales
$65,357
$408,214
Cost of goods sold
45,583
304,657
Selling and administrative expenses
15,101
79,607
L
Wal-Mart
Target
Corporation Stores, Inc.
Interest expense
707
2,065
Other income (expense)
(94)
(411)
Income tax eхрense
1,384
7,139
$ 2,488
Balance Sheet Data (End of Year)
Net income
$ 14,335
Current assets
$18,424
$ 48,331
Noncurrent assets
26,109
122,375
Total assets
$44,533
$170,706
Current liabilities
$11,327
$ 55,561
Long-term debt
Total stockholders' equity
17,859
44,089
15,347
71,056
Total liabilities and stockholders' equity
$44,533
$170,706
Beginning-of-Year Balances
Total assets
$44,106
$163,429
Total stockholders' equity
13,712
65,682
Current liabilities
10,512
55,390…
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Calculate net profit margin of the year 2019 and 2020
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Explain the income statement and balance sheet information based on two tables (250-300) words
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SEE MORE QUESTIONS
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Related Questions
- perform horizontal analysisarrow_forwardFINA310 IP TEMPLATE FOR STUDENTS Student name: Date: ACTUAL FORECAST Current Year Next Year Total Revenue 71,879 |Cost of Revenue (51,125) Gross Profit 20,754 Operating Expenses: Selling, General, and Administrative (14,248) Research and Development Special Income/Other Charges (2,194) Total Operating Expenses (16,442) Operating Income 4,312 Net Interest Income (666) edite Pre-Tax Income 3,646 Provision for Income Tax (19.5%) (711) Net Income 2,935 Additionally, Tag-It's CEO has predicted a 12% increase in total revenue next year. Utilizing the percentage of sales method, prepare a forecast for next year in the correct section on the Excel spreadsheet. 1. The total revenue numbers over the past 4 years for Tag-lt Corporation were as follows (values in millions): o 73,785 O 69,495 o 75,356 o 71,879 2. Determine whether you think Tag-It can hit the target of a 12% increase in sales next year.arrow_forwardBOARD ACTIVITY Instructions: Horizontal Vertical Make a Horizontal Analysis and Vertical Analysis for 2014 2015 Analysis Analysis Revenue 1,939,500 1,674,675 1. the given SCI. Cost of Goods Sold 900,000 843,975 2. 8. Gross Profit 1,039,500 830,700 10. Selling and General Expenses 445,500 409,725 ur Other Expenses 37,575 30,825 giv 5. 11. Net Income 556,425 390,150 12.arrow_forward
- Make at least 1 insightful observation about what you notice in your analysis.arrow_forwardExercise 13-3 (Algo) Computing and analyzing trend percents LO P1 Sales Cost of goods sold Accounts receivable. 2021 $ 706,675 363,004 34,274 2020 2019 $464,918 $ 371,9341 238,808 193, 136 27,058 25,477 2018 $ 260,094 133,898 15,268 2017 $ 194, 100 98,991 13,296 Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable.arrow_forwardEXPLAIN THE IMAGE PROVIDED GIVE RECOMMENDATIONarrow_forward
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SEE MORE QUESTIONS
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Recommended textbooks for you
- Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning