Question 2 (60 marks) A. Based on the calculation in part 1A, notably the profit margin...
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Question 2 (60 marks) A. Based on the calculation in part 1A, notably the profit margin increased from the October 2, 2022 (FY2022), to October 1, 2023 (FY2023). year ended i) What does the increase in profit margin imply, and what are the possible reasons for the increase? (5+ 20 marks) ii) If you were an equity investor, would you invest in Starbucks Corporation? Support your answer with calculation in part 1A, analysis in part 2Ai and/or additional research. (5 marks) B. i) Based on the calculation in part 1B, comment on the liquidity and solvency risks exposure of the company using the Acid test ratio and Debt to equty raito respectively. Also, identify the reasons that could have led to the improvement for the Acid test ratio from the year ended October 2, 2022 (FY2022) to October 1, 2023 (FY2023)? (5+5+15 marks) ii) If you are the owner/CEO of a major supplier which sells coffee beans to Starbucks, would you continue to supply the coffee beans? Support your answer with calculation in part 1B and analysis in part 2Bi and/or additional research. (5 marks) (Hints: You may find additional information regarding the company's operation in item 7 Management Discussion and Analysis of the annual report. You may also search for additional information from credible news sources and include them in your answer. There are no model answers or golden ratios for financial statement analysis. Marks will be given to all reasonable answers.) Additional instruction for completion and submission of the assignment: 1. Use the assignment submission link on Canvas to submit your case analysis. The assignment link will automatically calculate your similarity index. DO NOT copy the questions in your answer script, otherwise it will lead to a very high similarity rate. 2. Your assignment should not exceed 3 A4 pages in total and should not exceed 1 A4 page for each part of Question 2. You are required to use Times New Roman Font size 12 with single spacing. The bibliographies (Citations) don't count towards the page limit. 3. You are strongly advised to organize your Question 2 answers into several paragraphs and leave an empty line between each paragraph. 4.Use pdf format for submission. Your file should be named StudentId_Name_Sec_CB2100_Case.pdf. 5. Submit the assignment on or before Sunday April 14 2024 11:59 p.m. through this Canvas assignment. 2 Question 2 (60 marks) A. Based on the calculation in part 1A, notably the profit margin increased from the October 2, 2022 (FY2022), to October 1, 2023 (FY2023). year ended i) What does the increase in profit margin imply, and what are the possible reasons for the increase? (5+ 20 marks) ii) If you were an equity investor, would you invest in Starbucks Corporation? Support your answer with calculation in part 1A, analysis in part 2Ai and/or additional research. (5 marks) B. i) Based on the calculation in part 1B, comment on the liquidity and solvency risks exposure of the company using the Acid test ratio and Debt to equty raito respectively. Also, identify the reasons that could have led to the improvement for the Acid test ratio from the year ended October 2, 2022 (FY2022) to October 1, 2023 (FY2023)? (5+5+15 marks) ii) If you are the owner/CEO of a major supplier which sells coffee beans to Starbucks, would you continue to supply the coffee beans? Support your answer with calculation in part 1B and analysis in part 2Bi and/or additional research. (5 marks) (Hints: You may find additional information regarding the company's operation in item 7 Management Discussion and Analysis of the annual report. You may also search for additional information from credible news sources and include them in your answer. There are no model answers or golden ratios for financial statement analysis. Marks will be given to all reasonable answers.) Additional instruction for completion and submission of the assignment: 1. Use the assignment submission link on Canvas to submit your case analysis. The assignment link will automatically calculate your similarity index. DO NOT copy the questions in your answer script, otherwise it will lead to a very high similarity rate. 2. Your assignment should not exceed 3 A4 pages in total and should not exceed 1 A4 page for each part of Question 2. You are required to use Times New Roman Font size 12 with single spacing. The bibliographies (Citations) don't count towards the page limit. 3. You are strongly advised to organize your Question 2 answers into several paragraphs and leave an empty line between each paragraph. 4.Use pdf format for submission. Your file should be named StudentId_Name_Sec_CB2100_Case.pdf. 5. Submit the assignment on or before Sunday April 14 2024 11:59 p.m. through this Canvas assignment. 2
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