My milestone 1 assignment is to submit both a horizontal and vertical analysis of Starbucks accounts receivable, fixed assets, and 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?

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 should include a table of your calculations as an appendix to your analysis. Include all calculations in an Excel document. Specifically discuss the following categories:

A. AccountsReceivable:

1. Use basic financial analysis to examine any horizontalchanges in Starbucks accounts receivable balances over time.

2. Use basic financial analysis to examine any verticalchanges in Starbucks accounts receivable balances over time.

3. Analyze how Starbucks methodsfor 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. Asset Acquisition, Depreciation, and Amortization:

1. Use basic financial analysis to examine any horizontalchanges in Starbucks fixed assets, intangible assets, depreciation, and amortization over time.

2. Use basic financial analysis to examine any verticalchanges in Starbucks fixed assets, intangible assets, depreciation, and amortization over time.

3. Analyze Starbucks methodsfor fixed asset and intangible asset acquisitions as well as depreciation and amortization, including asset categorization. How dothese methods affect the balance sheet, income statement, and statement of cash flows?

C. DebtFinancing

1. Use basic financial analysis to examine any horizontalchanges in Starbucks short-and long-term debt over time.

2. Use basic financial analysis to examineany verticalchanges in Starbucks short-and long-term debt over time.

3. Analyze Starbucks methodof debt financing. In your analysis, you should address both current and long-term liabilities, including the issuance of bonds.