Specifically, the following critical elementsmust be addressed in your milestone submission:
I. Financial Indicators and Trend Analysis
A. Analyze various ratio analyses and compare them to the financial statements and footnotes. Note any similarities or differences.
B. In reviewing the gross profit ratio, 2010 and 2011 were consistent versus a slight decrease in 2012. If management is looking to increase the gross profit ratio by 4 %, what changes would need to be made in the components of gross profit( i. e., how much would sales increase if prices remained the same?)? Defend your response.
C. Analyze the return on assets( ROA) and discuss the advantages or disadvantages if Starbucks should expand assets by 5 % but remain stable with sales.
D. Perform a horizontal trend analysis on the revenue components of Starbucks’ s consolidated statements of earning and develop a pro forma financial statement for the next year, noting that coffee inventory will increase by 20 % and same-store sales will remain flat. Ensure all information is entered accurately.
III. Interpret Financial Information Based on the case and researching Starbucks corporate philosophy:
a. Summarize how Starbucks meets its mission of“ creating a reservoir of trust with their customers, partners, and communities that is deeper than at any time in their history.”
b. What considerationswould need to be identified in the financial statements if Starbucks carries out its commitment to hiring veterans and military spouses? Why?
c. As controller, what are three challengesrelated to meeting this goal?