Question

Please create a horizontal and vertical analysis

Jane Doe CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(in millions, except per share data)
	Sep 30,	Oct 1,
Fiscal Year Ended	2018	2017
Net revenues:
Company-operated stores	$        19,690.30	$        17,650.70
Licensed stores	2,652.20	2,355.00
Other	2,377.00	2,381.10
Total net revenues	24,719.50	22,386.80
Cost of sales including occupancy costs	10,174.50	9,034.30
Store operating expenses	7,193.20	6,493.30
Other operating expenses	539.30	500.30
Depreciation and amortization expenses	1,247.00	1,011.40
General and administrative expenses	1,759.00	1,450.70
Restructuring and impairments	224.40	153.50
Total operating expenses	21,137.40	18,643.50
Income from equity investees	301.20	391.40
Operating income	3,883.30	4,134.70
Gain resulting from acquisition of joint
venture	1,376.40	-
Net gain resulting from divestiture of
certain operations	499.20	93.50
Interest income and other, net	191.40	181.80
Interest expense	(170.30)	(92.50)
Earnings before income taxes	5,780.00	4,317.50
Income tax expense	1,262.00	1,432.60
Net earnings including noncontrolling
interests	4,518.00	2,884.90
Net earnings/(loss) attributable to
noncontrolling interests	(0.30)	0.20
Net earnings attributable to Starbucks	$          4,518.30	$          2,884.70
Earnings per share - basic	$                 3.27	$                 1.99
Earnings per share - diluted	$                 3.24	$                 1.97
Weighted average shares outstanding:
Basic	1,382.70	1,449.50
Diluted	1,394.60	1,461.50

-Did accounts receivable increase? -Did sales increase? Did plant, property, and equipment increase?

-What does this tell you about the company? Did sales increase or decrease? What about cost of sales? If you were going to look further into the company, what would you want to investigate?

Answer 1

For account receivables and plant, property, and equipment information is not given in the question.

Jane Doe CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(in millions, except per share data)
	Sep 30,	Oct 1,	Horizonal Analysis
Fiscal Year Ended	2018	2017
Net revenues:
Company-operated stores	$            19,690.30	$               17,650.70	11.56%
Licensed stores	2,652.20	2,355.00	12.62%
Other	2,377.00	2,381.10	-0.17%
Total net revenues	24,719.50	22,386.80	10.42%
Cost of sales including occupancy costs	10,174.50	9,034.30	12.62%
Store operating expenses	7,193.20	6,493.30	10.78%
Other operating expenses	539.3	500.3	7.80%
Depreciation and amortization expenses	1,247.00	1,011.40	23.29%
General and administrative expenses	1,759.00	1,450.70	21.25%
Restructuring and impairments	224.4	153.5	46.19%
Total operating expenses	21,137.40	18,643.50	13.38%
Income from equity investees	301.2	391.4	-23.05%
Operating income	3,883.30	4,134.70	-6.08%
Gain resulting from acquisition of joint venture	1,376.40	-	-
Net gain resulting from divestiture of certain operations	499.2	93.5	433.90%
Interest income and other, net	191.4	181.8	5.28%
Interest expense	-170.3	-92.5	84.11%
Earnings before income taxes	5,780.00	4,317.50	33.87%
Income tax expense	1,262.00	1,432.60	-11.91%
Net earnings including noncontrolling interests	4,518.00	2,884.90	56.61%
Net earnings/(loss) attributable to noncontrolling interests	-0.3	0.2	-250.00%
Net earnings attributable to Starbucks	4,518.30	2,884.70	56.63%
	Sep 30,	vertical analysis	Oct 1,	vertical analysis
Fiscal Year Ended	2018		2017
Net revenues:
Company-operated stores	$            19,690.30	79.65%	$       17,650.70	78.84%
Licensed stores	2,652.20	10.73%	2,355.00	10.52%
Other	2,377.00	9.62%	2,381.10	10.64%
Total net revenues	24,719.50	100.00%	22,386.80	100.00%
Cost of sales including occupancy costs	10,174.50	41.16%	9,034.30	40.36%
Store operating expenses	7,193.20	29.10%	6,493.30	29.01%
Other operating expenses	539.3	2.18%	500.3	2.23%
Depreciation and amortization expenses	1,247.00	5.04%	1,011.40	4.52%
General and administrative expenses	1,759.00	7.12%	1,450.70	6.48%
Restructuring and impairments	224.4	0.91%	153.5	0.69%
Total operating expenses	21,137.40	85.51%	18,643.50	83.28%
Income from equity investees	301.2	1.22%	391.4	1.75%
Operating income	3,883.30	15.71%	4,134.70	18.47%
Gain resulting from acquisition of joint venture	1,376.40	5.57%	-
Net gain resulting from divestiture of certain operations	499.2	2.02%	93.5	0.42%
Interest income and other, net	191.4	0.77%	181.8	0.81%
Interest expense	-170.3	-0.69%	-92.5	-0.41%
Earnings before income taxes	5,780.00	23.38%	4,317.50	19.29%
Income tax expense	1,262.00	5.11%	1,432.60	6.40%
Net earnings including noncontrolling interests	4,518.00	18.28%	2,884.90	12.89%
Net earnings/(loss) attributable to noncontrolling interests	-0.3	0.00%	0.2	0.00%
Net earnings attributable to Starbucks	4,518.30	18.28%	2,884.70	12.89%
Sales has in year 2018 increased to 10.42% as compared to year 2017.
Cost of sales has increased in year 2018