Calculate the expenses to determine what will change

Assignment Help Financial Management

Reference no: EM133714892

Homework: Financial Forecasting

Review the current financial statements of Starbucks through Yahoo! Finance or the EDGAR | Company Filings database in the Filings and Forms page. You can access the financial statements by going to the Yahoo! Finance webpage, typing in the stock symbol of Starbucks, and then clicking on the "Financials" tab. Watch the Week 1 Homework video with Dr. Kevin Kuznia, DBA, CSSBB, PMP, available in the online classroom.

Reviewing the previous quarter's financial statements will provide you with data to construct pro forma financial statements for Starbucks and make some basic projections. This week, you will be charged with constructing two pro forma financial statements and addressing some questions about your projections. The two financial statements will include an Income Statement and Balance Sheet.

To begin your homework, download the Financial Forecasting Template.

Part I

Use the EDGAR | Company Filings or Yahoo! Finance database to download the last 10-Q from Starbucks into Excel. Use the downloaded data to complete the Income Statement and Balance Sheet on the appropriate tabs in the Financial Forecasting Template. Assume the following:

Sales will increase for the next quarter by the same percentage increase from the previous quarter to the last reported quarter. For example, if sales increased 8% from the last quarter to the current reported quarter, you will use 8% as the sales increase for your pro formas.

Calculate the expenses to determine what will change and what will remain the same.

Note: Not all costs are associated with the cost of sales. It will be up to you to determine which line items need to be increased and which ones need to be left alone. This will require you to distinguish between fixed and variable costs. For a reminder of the difference between fixed and variable costs, please watch the video Business Costs (Fixed Costs and Variable Costs) Explained.

Within each line item expense explain your rationale, as well as provide a brief summary.

Part II

Then, calculate a quarterly variance analysis using the Variance Analysis tab of the Financial Forecasting Template (the same template you used for Part I). Complete the following in your variance analysis:

1. In the Excel template, insert the line items.

2. In Column C, (Q4, 20NN) enter the previous quarter's numbers as the budget.

3. In Column D, (Q1, 20NN) enter the current quarter's actual numbers.

4. In Column E, the spreadsheet will calculate the dollar difference between the budget and actual numbers.

5. In Column F, the spreadsheet will calculate the percentage change.

6. In Column G, analyze and speculate the rationale for the variances.

Reference no: EM133714892

Questions Cloud

Evaluated by nurse practitioner for immunization status : A 23 year old patient is being evaluated by the nurse practitioner for immunization status. The patient has documentation of completion of IPV,

How does ruckus society-domestic workers united organization : How does the The Ruckus Society and the Domestic Workers United (DWU) organization approach to community organization similar or different?

Define preeclampsia including clinical presentation : Define preeclampsia including clinical presentation and lab values. What criteria determines that a client is diagnosed with eclampsia?

Impact of political correctness in our society : What problem does political correctness address -- i.e., does political correctness perform, in any sense, a valuable and necessary function in society?

Calculate the expenses to determine what will change : Calculate the expenses to determine what will change and what will remain the same. Within each line item expense explain your rationale.

Specific challenges that patients on autism spectrum : Write about 2-3 of the specific challenges that patients on the autism spectrum can encounter at the doctor's office using examples

Define hellp syndrome : Define HELLP Syndrome. What are the signs and symptoms of HELLP Syndrome?

Describe methods that can use to evaluate potential supplier : Name the three processes that make up project procurement management. Describe two methods that can be used to evaluate potential suppliers.

Examine the global standards of beauty : The film 'Yellow Fever' by Ng'endo Mukii insightfully examines the global standards of beauty. It's distressing to witness young girls questioning their value.

User Account

All Pages