Question

Answer should be detailed and in paragraph form please

After extensive collaborative discussions with your group, your in-depth readings, and connecting that information with the spreadsheets you produced, you are to submit an individual one to two page report via Blackboard answering the following from an accounting perspective, not a marketing/management perspective: 1 of the 15 risks that Starbuck's management discloses, which one do you think could most adversely affect the balance sheet and why? 2. Of the 15 risks that Starbuck's management discloses, which one do you think could most adversely affect the income statement and why? 3. Of the 15 risks that Starbuck's management discloses, which one do you think could most adversely affect the Cash Flow Statement and why? 4. Risk number 10 above states "Increases in the cost of high-quality arabica coffee beans or other commodities or decreases in the availability of high-quality arabica coffee beans or other commodities could have an adverse impact on our business andfinancial results." Which ratios would be adversely affected if increases in cost or supply chain disruptions occurred for arabica beans? Explain why. 5. Compare your readings of management's assertions and your findings of your vertical, horizontal, ratio and chart analysis. Discrepancies may exist between what the ratios are indicating and what management is telling you. Is management telling the public one thing, but the financial information indicates another? Explain to the best of your ability

Answer 1

1. Out of these risks, I personally think that the risk related to its dependency on the financial performance of our Americas operating segment, If the Americas operating segment revenue trends slow or decline, especially in our U.S. and Canada markets, our other segments may be unable to make up any significant shortfall and our business and financial results could be adversely affected.

2. Along with another risk, The loss of key personnel or difficulties recruiting and retaining qualified personnel could adversely impact our business and financial results as the company is dedicated to serving worldwide with better service in their coffee and other cafe products and this can be possible due to proper management and the key personnel. If the company loses its key person or hires new personnel could directly harm its production and revenue. On this note, if Company has the ability to attract and retain both corporate and retail personnel is also acutely impacted in certain international and domestic markets where the competition for a relatively small number of qualified employees is intense or in markets where large high-tech companies are able to offer more competitive salaries and benefits. If we are unable to recruit, retain and motivate employees sufficiently to maintain our current business and support our projected growth, our business and financial performance may be adversely affected.

3. Out of these risks, I personally think that the risk related to its dependency on the financial performance of our Americas operating segment, If the Americas operating segment revenue trends slow or decline, especially in our U.S. and Canada markets, our other segments may be unable to make up any significant shortfall and our business and financial results could be adversely affected.