Instruction
1. Familiarize yourself with how a typical Starbucks store operates and identify a store level risk (as opposed to Marketing or Management). On page 3 & 4 [Instructions PDF] - Observe Starbucks on a store level using Yelp, Google, Facebook, Glass door, Urban spoon etc.. to view and compare different Starbucks store locations. ----- 2. Examine the risk factors that may be present at the Store Level from an accounting perspective (as opposed to Marketing or Management). Choose 1 out of the 10 risk factors on page 5 [instructions PDF] - (I recommend choosing “#5. Can inventory be stolen? Is there a specific category or single item more susceptible than others?”) explain its adverse effect on the Income, Balance sheet and Cashflows financial statements. How would it effect the vertical, horizontal, ratio, and chart analysis in “Project Two - spreadsheet”? ----- 3. Describe the impacts on financial statements should a store level risk you’ve chosen from page 5 [instructions PDF] come to fruition using a hypothetical “what-if” analysis applied to vertical, horizontal, ratio, and chart analysis from “Project Two Spreadsheet”. In “Project Two Spreadsheet” in excel go to: Data -> “What-if” -> Scenario Manager -> “Add” -> Create one scenario using default values then create another hypothetical scenario such as example: increasing/decreasing a value by 10% due to stolen inventory and highlight what values gets effected. ----- 4. Answer 7 questions (1-2 paragraphs each) based off of observation of Starbucks on a store level, Project Two - Spreadsheet and Starbucks 10-K 2019 Report.