FINANCIAL STATEMENTS

Use the same annual statements for Starbucks as for the prior module. The Starbucks income statements should be used for the first two questions. Do additional research as necessary for the last question.

  • Locate the income statement for the past two years. Prepare a table in good format comparing at least ten revenue and expense items for the two years. Did the numbers increase or decrease? What can we learn from this information?
  • Comment on the changes from one year to another. Is the company doing better or worse? Did revenues and expenses increase or decrease? Are revenues and expenses moving in the same direction?
  • Investors emphasize earnings per share. Why is this number so important and what are some of the shortcomings of this number?

Assignment Expectations

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. Incorporate the required table into the Word document. Do not submit a separate spreadsheet. The suggested length is minimum five pages, including the table.

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