SEC 10 k paper 221

1150 WordsNov 12, 20145 Pages
SEC 10- K Paper Acct 221 Lakesha Craft SEC 10-K Paper The first Starbucks coffee shop opened in 1971 in Seattle Washington. The coffee shop was founded by three partners. Jerry Baldwin and Zev Siegl were teachers and Gordon Bowker was a writer. The idea to have a coffee shop came about when a close friend was selling high quality coffee beans and equipment. After a matter of time, the partners decided to purchase the product from the grower. The coffee shop was named after the Nantucket Whaleship first mate from the novel Moby-Dick. In 1982 Howard Schultz joined the company as the Director of Marketing and Retail Operations. He tried to convince the coffee shop partners to expand the business by…show more content…
The need to do a comparative analysis is important in relation Starbucks needs for cash. There are many comparisons that can be made. The first comparison is the Intracompany basis. This method takes the current cash amount and then compared with the last year amount. Industry averages comparisons provide Starbucks with the industry averages of information about other companies. For example, Starbucks can compare their business to the company Seattle’s Best another coffee company. The Intercompany basis helps companies do comparisons with their competitors. For example, Starbucks would look at their competitors like Dunkin Doughnuts for a comparison. There are three main tools of Analysis. The first tool is the horizontal analysis. This method reviews a series of a company’s financial statement data over time period. This helps determine if an increase or decrease in sales. The formula for this method is by taken the current year amount subtract by the base amount divided the base year amount. The second method is the vertical analysis. This method evaluates the financial statement by expressing each as a percent of a base amount. This technique is sometimes called the common size analysis. It also shows the size of each category on the balance sheet. For example the individual asset, liability, and equity items are the different items listed on sheet. The next method is the ratio analysis. This

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