Financial Budgeting and Forecasting

Prior to beginning work on this assignment, read Chapter 4, “Financial Forecasting,” in the textbook and review the current financial statements of Starbucks through Yahoo! Finance (Links to an external site.) or the EDGAR | Company Filings (Links to an external site.)database in the Filings and Forms page. You can access the financial statements by going to the Yahoo! Finance web page, typing in the stock symbol of Starbucks, and then clicking on the “Financials” tab. Watch the Week 1 Assignment video above with Dr. Kevin Kuznia, Academic Department Chair.

Reviewing the previous quarter’s financial statements will provide you with data to construct pro forma financial statements for Starbucks and make some basic projections. This week, you will be charged with constructing two pro forma financial statements and addressing some questions about your projections. The two financial statements will include an Income Statement and Balance Sheet.

To begin your assignment, download the Financial Forecasting Template.

Part 1

Use Yahoo! Finance (Links to an external site.) or the EDGAR | Company Filings (Links to an external site.)database to download the last 10Q from Starbucks into excel. Use the downloaded data to complete the Income Statement and Balance Sheet on the appropriate tabs in the Financial Forecasting Template. Assume the following:

Sales will increase for the next quarter by the same percentage increase from the previous quarter to the last reported quarter. For example, if sales increased 8% from the last quarter to the current reported quarter, you will use 8% as the sales increase for your pro formas.

Calculate the expenses to determine what will change and what will remain the same.

Note: Not all costs are associated with the cost of sales. It will be up to you to determine which line items need to be increased and which ones need to be left alone. This will require you to distinguish between fixed and variable costs. For a reminder of the difference between fixed and variable costs, please watch the video Business Costs (Fixed Costs and Variable Costs) Explained (Links to an external site.).

Within each line item expense explain your rationale, as well as provide a brief summary.

Part 2

Then, calculate a quarterly variance analysis using the Variance Analysis tab of the Financial Forecasting Template (the same template you used for Part 1). Complete the following in your variance analysis:

In the Excel template, insert the line items.

In Column C, (Q4, 20NN) enter the previous quarter’s numbers as the budget.

In Column D, (Q1, 20NN) enter the current quarter’s actual numbers.

In Column E, the spreadsheet will calculate the dollar difference between the budget and actual numbers.

In Column F, the spreadsheet will calculate the percentage change.

In Column G, analyze and speculate the rationale for the variances.

Submit your completed Financial Forecasting Template to Waypoint.

Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.

 

Introduction

 

Completes a Proforma Income Statement (1.5pts)

Completes a Proforma Balance Sheet (1.5pts)

Reports Budget Numbers (1.5pts)

Provides an Analysis and Rationale for the Variances (1.5pts)

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more