Question

Go to Yahoo Finance and enter SBUX in the search bar to access the financial statements for Starbucks. Access the two most recent income statements and balance sheets that are provided, and prepare horizontal and vertical analyses of both.

Income Statement All numbers in thousands Revenue 10/1/2017 10/2/2016 9/27/2015 Total Revenue 22,386,800 21,315,900 19,162,700 Cost of Revenue 9,038,200 8,511,100 7,787,500 Gross Profit 13,348,600 12,804,800 11,375,200 Operating Expenses Research Development - - - Selling General and Administrative 8,440,400 7,970,300 7,130,200 Non Recurring 153,500 153,500 153,500 Others 1,011,400 980,800 893,900 Total Operating Expenses - - - Operating Income or Loss 4,134,700 4,171,900 3,601,000 Income from Continuing Operations Total Other Income/Expenses Net 275,300 108,000 372,500 Earnings Before Interest and Taxes 4,410,000 4,279,900 3,973,500 Interest Expense 92,500 81,300 70,500 Income Before Tax 4,317,500 4,198,600 3,903,000 Income Tax Expense 1,432,600 1,379,700 1,143,700 Minority Interest 6,900 6,700 1,800 Net Income From Continuing Ops 3,276,100 3,135,900 2,946,200 Non-recurring Events Discontinued Operations - - - Extraordinary Items - - - Effect Of Accounting Changes - - - Other Items - - - Net Income Net Income 2,884,700 2,817,700 2,757,400 Preferred Stock And Other Adjustments - - - Net Income Applicable To Common Shares 2,884,700 2,817,700 2,757,400 Balance Sheet
All numbers in thousands
Period Ending	10/1/2017	10/2/2016	9/27/2015
Current Assets
Cash And Cash Equivalents	2,462,300	2,128,800	1,530,100
Short Term Investments	228,600	134,400	81,300
Net Receivables	870,400	768,800	719,000
Inventory	1,364,000	1,378,500	1,306,400
Other Current Assets	358,100	347,400	334,200
Total Current Assets	5,283,400	4,757,900	3,971,000
Long Term Investments	1,023,900	1,496,200	664,500
Property Plant and Equipment	4,919,500	4,533,800	4,088,300
Goodwill	1,539,200	1,719,600	1,575,400
Intangible Assets	441,400	516,300	520,400
Accumulated Amortization	-	-	-
Other Assets	362,800	403,300	415,900
Deferred Long Term Asset Charges	795,400	885,400	1,180,800
Total Assets	14,365,600	14,312,500	12,416,300
Current Liabilities
Accounts Payable	2,932,200	2,975,700	2,664,300
Short/Current Long Term Debt	-	399,900	-
Other Current Liabilities	1,288,500	1,171,200	983,800
Total Current Liabilities	4,220,700	4,546,800	3,648,100
Long Term Debt	3,932,600	3,185,300	2,347,500
Other Liabilities	755,300	689,700	600,900
Deferred Long Term Liability Charges	-	-	-
Minority Interest	6,900	6,700	1,800
Negative Goodwill	-	-	-
Total Liabilities	8,915,500	8,428,500	6,598,300
Stockholders' Equity
Misc. Stocks Options Warrants	-	-	-
Redeemable Preferred Stock	-	-	-
Preferred Stock	-	-	-
Common Stock	1,400	1,500	1,500
Retained Earnings	5,563,200	5,949,800	5,974,800
Treasury Stock	-	-	-
Capital Surplus	41,100	41,100	41,100
Other Stockholder Equity	-155,600	-108,400	-199,400
Total Stockholder Equity	5,450,100	5,884,000	5,818,000
Net Tangible Assets	3,469,500	3,648,100	3,722,200

Answer 1

Income Statement - Horizontal and Vertical analysis
All numbers in thousands
Revenue	43,009	Vertical Analysis	42,645	Vertical Analysis	42,274	Vertical Analysis	Horizontal Analysis
							Changes from 2015 to 2016	Changes from 2016 to 2017
Total Revenue	22,386,800	100%	21,315,900	100%	19,162,700	100%	11%	5%
Cost of Revenue	9,038,200	40%	8,511,100	40%	7,787,500	41%	9%	6%
Gross Profit	13,348,600	60%	12,804,800	60%	11,375,200	59%	13%	4%
Operating Expenses
Research Development	-		-		-
Selling, General and Administrative	8,440,400	38%	7,970,300	37%	7,130,200	37%	12%	6%
Non recurring	153,500	1%	153,500	1%	153,500	1%	0%	0%
Others	1,011,400	5%	980,800	5%	893,900	5%	10%	3%
Total Operating Expenses	-		-		-
Operating Income or Loss	4,134,700	18%	4,171,900	20%	3,601,000	19%	16%	-1%
Income from Continuing Operation
Total Other Income/Expenses Net	275,300	1%	108,000	1%	372,500	2%	-71%	155%
Earning before Interest and Taxes	4,410,000	20%	4,279,900	20%	3,973,500	21%	8%	3%
Interest Expenses	92,500	0%	81,300	0%	70,500	0%	15%	14%
Income Before Taxes	4,317,500	19%	4,198,600	20%	3,903,000	20%	8%	3%
Income Taxes Expenses	1,432,600	6%	1,379,700	6%	1,143,700	6%	21%	4%
Minority Interest	6,900	0%	6,700	0%	1,800	0%	272%	3%
Net Income from Continuing Operations	3,276,100	15%	3,135,900	15%	2,946,200	15%	6%	4%
Non recurring Events
Discontinued Operation
Extraordinary Items
Effects of Accounting Changes
Other Items
Net Income	2,884,700	13%	2,817,700	13%	2,757,400	14%	2%	2%
Preferred Stock and other adjustments
Net Income Applicable to Common Shares	2,884,700	13%	2,817,700	13%	2,757,400	14%	2%	2%
Balance Sheet
All numbers in thousands
Period Ending	43,009	Vertical Analysis	42,645	Vertical Analysis	42,274	Vertical Analysis	Horizontal Analysis
Current Assets							Changes from 2015 to 2016	Changes from 2016 to 2017
Cash and Cash Equivalents	2,462,300	17%	2,128,800	15%	1,530,100	12%	39%	16%
Short Term Investment	228,600	2%	134,400	1%	81,300	1%	65%	70%
Net Receivables	870,400	6%	768,800	5%	719,000	6%	7%	13%
Inventory	1,364,000	9%	1,378,500	10%	1,306,400	11%	6%	-1%
Other Current Assets	358,100	2%	347,400	2%	334,200	3%	4%	3%
Total Current Assets	5,283,400	37%	4,757,900	33%	3,971,000	32%	20%	11%
Long Term Investments	1,023,900	7%	1,496,200	10%	664,500	5%	125%	-32%
Property Plant and Equipment	4,919,500	34%	4,533,800	32%	4,088,300	33%	11%	9%
Goodwill	1,539,200	11%	1,719,600	12%	1,575,400	13%	9%	-10%
Intangible Assets	441,400	3%	516,300	4%	520,400	4%	-1%	-15%
Accumulated Amortization	-		-		-
Other Assets	362,800	3%	403,300	3%	415,900	3%	-3%	-10%
Deferred Long Term Asset Charges	795,400	6%	885,400	6%	1,180,800	10%	-25%	-10%
Total Assets	14,365,600	100%	14,312,500	100%	12,416,300	100%	15%	0%
Current Liabilities
Accounts Payable	2,932,200	20%	2,975,700	21%	2,664,300	21%	12%	-1%
Short/Current Long Term Debts	-		399,900	3%	-
Other Current Liabilities	1,288,500	9%	1,171,200	8%	983,800	8%	19%	10%
Total Current Liabilties	4,220,700	29%	4,546,800	32%	3,648,100	29%	25%	-7%
Long Term Debt	3,932,600	27%	3,185,300	22%	2,347,500	19%	36%	23%
Other Liabilties	755,300	5%	689,700	5%	600,900	5%	15%	10%
Deferred Long Term Liability Charges	-		-		-
Minority Interest	6,900	0%	6,700	0%	1,800	0%	272%	3%
Negative Goodwill	-		-		-
Total Liabilities	8,915,500	62%	8,428,500	59%	6,598,300	53%	28%	6%
Stockholder's Equity
Misc. Stock Options Warrants	-		-		-
Redeemable Preferred Stock	-		-		-
Preferred Stock	-		-		-
Common Stock	1,400	0%	1,500	0%	1,500	0%	0%	-7%
Retained Earnings	5,563,200	39%	5,949,800	42%	5,974,800	48%	0%	-6%
Treasury Stock	-		-		-
Capital Surplus	41,100	0%	41,100	0%	41,100	0%	0%	0%
Other Stockholders Equity	(155,600)	-1%	(108,400)	-1%	(199,400)	-2%	-46%	44%
Total Stockholder Equity	5,450,100	38%	5,884,000	41%	5,818,000	47%	1%	-7%
Net Tangible Assets	3,469,500	24%	3,648,100	25%	3,722,200	30%	-2%	-5%