Starbucks is one of the largest companies around the world. Not only is it recognized domestically it is an International sensation. The company was founded in 1971 in Seattle, Washington and became the number one specialty coffee and retailer domestically and globally. They have over 20,000 stores in over 62 countries that produce premier roasted coffee. Another way they reach out their brand is selling to other stores such as: grocery stores and other food service places (scholar.harvard.edu).
A.) Accounts Receivable
Horizontal changes-Starbucks financial data shows their fiscal year ends towards the closest day on Sunday ending in September 30th. Their total revenues have increased from 11% to $16.4 billion since 2014. On a global scale their …show more content…
Debt Financing
Horizontal changes-Starbucks has an annual marketing expense, which includes components such as advertising costs. Their expense is mostly advertising costs as they occur but this doesn’t include certain production costs. Some of their marketing expenses had a grand total of $351.5 million, $315.5 million and $306.8 million for the fiscal 2015, 2014, and 2013 (www.sec.gov).
Vertical changes- One of the ways Starbucks income taxes are utilized is by the asset and liability method. This means under this type of method the deferred income taxes are based on the difference between the financial statement and the respective tax. Deferred tax assets and liabilities is a measurable tool using current tax rates that expect to apply to taxable income (www.sec.gov).
Starbucks method- Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Earnings per share is computed based on the weighted average number of shares of common stock and the effect of dilutive potential common shares outstanding during the period, calculated using the treasury stock method. Potential common shares include outstanding stock