First, you need to download Starbuck’s 2020 10-K data and make a common-size balance sheet and common-size income statement. To download, go to sec.gov, click on company filings on the top right, and search “SBUX” as Starbucks trading symbol. Search filing type “10-k”, then click on “Interactive Data”. To download financial statements, click on “View Excel Document”. To view 10-K, click on “10-K”. Submit a written report to answer the following questions.

• Construct a common-size income statement and balance sheet using the 2020’s 10-K for two years.

• What are the major assets? What are the intangible assets? Are there any unrecorded intangible assets?

• How is Starbucks financed?

• Review the revenue recognition policies in Note 1 to the Consolidated Financial Statements on 10-K. Does Starbucks record revenue when they receive cash from customers (cash-basis accounting) or follow a different rubric (e.g. accrual accounting)?

• How does Starbucks record revenue on stored value cards or gift cards? What challenges in measuring revenue do you observe? That is, are there any significant judgments management needs to make in recording sales revenue?

• What are its major expenses? Are there significant cost structure changes?

• Are there litigation charges and where are they included?

• Compare its net income to net cash provided by operating activities and explain the difference

• How much cash did Starbucks use for expenditures for PPE? • What amount of dividends did Starbucks pay during the year? How does this amount compare to the amount of dividends declared as shown in the statement of equity?

Answer rating: 100% (QA)

Construct a commonsize income statement and balance sheet using the 2020s 10K for two years What are the major assets What are the intangible assets Are there any unrecorded intangible assets Starbuck... View the full answer