Starbucks Analysis for the fiscal years 2014 and 2015

Accounting for a Merchandising Business
August 8, 2017
Warehouse Inventories
August 8, 2017
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Starbucks Analysis for the fiscal years 2014 and 2015

Overview
You will submit the following in both ahorizontalandverticalanalysis of the companyStarbucks: 2015 and 2014 financial year
Accounts Receivable
Fixed Assets
Debt Financing
Use basic financial analysis to examine any horizontal and any vertical changes in Starbucks accounts receivable, fixed assets, and debt financing balances over time.Be sure also to discuss how Starbucks methods for accounting for receivables and evaluating uncollectible receivables, purchase of fixed assets, and methods of debt financing impact the recording process and presentation of financial statements (Critical Element II). In other words:
What are this companys methods for accounting for receivables and evaluating uncollectible receivables?
What types of fixed assets are acquired, and what methods are preferred for debt financing?
How do those affect how financial information is communicated?

***** More specifically below, the following critical elements must be addressed in your analysis of the company Starbucks: *****

Critical Element II
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 shouldincludea table of your calculations as an appendix to your analysis. Include all calculations in anExceldocument. Specifically discuss the following categories:
A.AccountsReceivable:
1.Use basic financial analysis to examine anyhorizontalchanges in Starbucks accounts receivable balances over time.
2.Use basic financial analysis to examine anyverticalchanges in Starbucks accounts receivable balances over time.
3.Analyze how Starbucksmethodsfor accounting for receivables and evaluating uncollectible receivables impact the recording process and presentation of financial statements. In other words, what are this companys methods for accounting for receivables and evaluating uncollectible receivables, and how do those affect how financial information is communicated?
B.AssetAcquisition, Depreciation, and Amortization:
1.Use basic financial analysis to examine anyhorizontalchanges in Starbucks fixed assets, intangible assets, depreciation, and amortization over time.
2.Use basic financial analysis to examine anyverticalchanges in Starbucks fixed assets, intangible assets, depreciation, and amortization over time.
3.Analyze Starbucksmethodsfor 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?
C.DebtFinancing:
1.Use basic financial analysis to examine anyhorizontalchanges in Starbucks short-and long-term debt over time.
2.Use basic financial analysis to examine anyverticalchanges in Starbucks short-and long-term debt over time.
3.Analyze Starbucksmethodof debt financing. In your analysis, you should address both current and long-term liabilities, including the issuance of bonds.

Paper Format Guidelines for Submission:
Milestone one should adhere to the following formatting requirements:
23 pages (not including cover page or appendix), double-spaced, using 12-point Times New Roman font and the most current guidelines for APA formatting. Include all calculations in an Excel document.

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