ACCOUNTING STANDARDS AND FINANCIAL STATEMENT ANALYSIS
Use the latest financial statements from Starbucks to compute ratios for the categories listed below. Use the formulae shown in the segment on “tools for financial statement analysis.”
IBISWorld is a proprietary database providing industry research. It is accessible via the Trident library. The database is found under additional library resources and offers a lot of interesting industry information, including financial information.
Compute two ratios for each of the following categories.
Debt service ratios
Compare the ratios computed with industry ratios. Use IBISWorld.
Below is a brief introduction to financial ratios using IBISWorld:
Show the computations and summarize the information in an easy to read table.
Write a three-paragraph memo to comment on the ratios computed and how the company is doing relative to its industry.
Paragraph 1: What is the purpose of computing the ratios?
Paragraph 2: What did you learn?
Paragraph 3: Conclusion/summary of the information.
Address the memo to your instructor. Follow APA format. See sample at the following link: https://owl.english.purdue.edu/owl/resource/590/04/
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. The suggested length is five to seven pages.
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