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386AccountingProjectfall2019.docx
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Accounting Project
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<!DOCTYPE html PUBLIC "-//ABISOURCE//DTD XHTML plus AWML 2.2//EN" "http://www.abisource.com/2004/xhtml-awml/xhtml-awml.mod"><html xmlns="http://www.w3.org/1999/xhtml" xmlns:awml="http://www.abisource.com/2004/xhtml-awml/"> <head> <meta http-equiv="Content-Type" content="application/xhtml+xml; charset=UTF-8" /> <title> Abiword HTML Document </title> </head> <body> <div> <p style="text-align:center"> <a name="_GoBack"> </a> <span style="font-weight:bold;font-size:12pt;font-family:'Times New Roman'">ACCT. 510 – Accounting for Business Decisions</span> </p> <p class="no_spacing" style="text-align:center" awml:style="No Spacing"> <span style="font-weight:bold;font-size:12pt;font-family:'Times New Roman'">TEAM PROJECT</span> </p> <p class="no_spacing" style="text-align:center" awml:style="No Spacing"> <span style="font-weight:bold;font-size:12pt;font-family:'Times New Roman'">FALL 2019</span> </p> <p class="no_spacing" style="text-align:center" awml:style="No Spacing"> </p> <p class="no_spacing" style="text-align:justify" awml:style="No Spacing"> <span style="font-size:12pt;font-family:'Times New Roman'">The basic financial statements of a company include the balance sheet, income statement and cash flow statement. Each statement contains specific information about the company. When viewed together, much can be learned about how the company operates and the impact of decisions made during the period.</span> </p> <p class="no_spacing" style="text-align:justify" awml:style="No Spacing"> </p> <p class="no_spacing" style="text-align:justify" awml:style="No Spacing"> <span style="font-size:12pt;font-family:'Times New Roman'">Obtain the 2017 and 2018 annual reports for Starbucks. Use the information in the financial statements to respond to the following questions:</span> </p> <p class="no_spacing" style="text-align:justify" awml:style="No Spacing"> </p> <span></span><span style="font-size:12pt;font-family:'Times New Roman'">Write out the basic accounting (balance sheet) equation and provide the values reported by Starbucks at September 30, 2018.</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">Did total assets increase or decrease in 2018 over the previous year?</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">How much inventory did the company have at September 30, 2018?</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">What are the major operating revenue accounts? What percentage is each to total revenues?</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">What are the major operating expense accounts? What percentage is each to total operating expenses?</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">Describe the company’s revenue recognition policy, if reported. (See significant accounting policies).</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">What is Starbuck’s gross margin in 2018? Was this an increase or decrease from 2017?</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">What type of costs do you think is included in Starbuck’s ‘Cost of Sales?’</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">How do ‘cost of sales’ differ from ‘operating expenses’</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">What inventory valuation method does the company use?</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">What were cash flows from operating activities?</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">What were cash flows from investing activities?</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">What were cash flows from financing activities?</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">What was the increase/decrease in cash in 2018 from 2017?</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">Ratio Analysis: Compute the following ratios for 2017 and 2018 for Starbucks?</span> <ul awml:style="No Spacing"> <li> <span></span><span style="font-size:12pt;font-family:'Times New Roman'">Current Ratio</span> </li> <li> <span></span><span style="font-size:12pt;font-family:'Times New Roman'">Quick Ratio</span> </li> <li> <span></span><span style="font-size:12pt;font-family:'Times New Roman'">Accounts Receivable Turnover Ratio</span> </li> <li> <span></span><span style="font-size:12pt;font-family:'Times New Roman'">Inventory Turnover Ratio</span> </li> <li> <span></span><span style="font-size:12pt;font-family:'Times New Roman'">Debt-to-Equity Ratio</span> </li> <li> <span></span><span style="font-size:12pt;font-family:'Times New Roman'">Return on Equity</span> </li> <li> <span></span><span style="font-size:12pt;font-family:'Times New Roman'">Return on Assets</span> </li> <li> <span></span><span style="font-size:12pt;font-family:'Times New Roman'">Quality of Net Income (Cash Flows from Operating Activities/Net Income)</span> </li> <li> <span></span><span style="font-size:12pt;font-family:'Times New Roman'">Profit Margin</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">What does each ratio measure and what does your results suggest about the company?</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">If available, find the industry ratios for the most recent year, compare to your results, and discuss why you believe your company differs or is similar to the industry.</span><span></span><span style="font-size:12pt;font-family:'Times New Roman'">Were there any economy, industry or company-specific factors that impact Starbuck’s future income and growth? If so, briefly discuss.</span> </li> </ul> </div> </body> </html> ">
