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 ?