Assignment

Income Statement Background Info/ Research Info

Use the same annual statements for Starbucks as for the prior module. The Starbucks income statements should be used for the first two questions. Do additional research as necessary for the last question.

Go to starbucks website review background material, and do additional research as needed to write an essay where you incorporate answers to the questions below.

Instructions

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Incorporate the required table into the Word document. Do not forget to include references in APA format, 6 pages

One page

Task

Find information for coffee store franchises in the iExpert Industry Summary. Add three facts about the industry and comment on the information relative to Starbucks.

1. Locate the income statement for the past two years. Prepare a table in good format comparing at least ten revenue and expense items for the two years. Did the numbers increase or decrease? What can we learn from this information?

2. Comment on the changes from one year to another. Is the company doing better or worse? Did revenues and expenses increase or decrease? Are revenues and expenses moving in the same direction?

3. How is Starbucks doing vis-à-vis the industry? Use IBISWorld to answer this question.

4. Investors emphasize earnings per share. Why is this number so important and what are some of the shortcomings of this number?

5 pages

Instructions

Use the income statement (the screen shot attached) to answer the questions below. Use Word and respond in a question and answer format. There is no need to use Excel for this.

1. Is VWV a manufacturer/reseller or a service company?

2. Explain the term cost of goods sold in your own words. Why is this item significant?

3. Does the company have employees?

4. Does the company own some type of property? Can we tell from looking at the income statement alone or do we need to look at the balance sheet too?

5. Are earnings per share important information for VWV Company?

6. How do the dividends affect the income statement?

7. How do we know that VWV Company is using the accrual basis of accounting? Hint: Do not forget to look at the balance sheet from the prior module.

8. Why is the company using the accrual basis of accounting rather the cash basis?

9. Comment on operating income versus net income.

Income Statement for VWV Company info is located on the screen shot images enclosed.

Attachment:- Income-Statement.rar