Accounting Standards and Financial Statements

Assignment Overview

Use the latest financial statements from Starbucks to compute ratios for the categories listed below. Use the formulae shown in the segment on “tools for financial statement analysis.”

IBISWorld is a proprietary database providing industry research. It is accessible via the Trident library. The database is found under additional library resources and offers a lot of interesting industry information including financial information.

Case Assignment

Part I

Compute two ratios for each of the following categories.

  • Liquidity ratios
  • Debt service ratios
  • Profitability ratios

Compare the ratios computed with industry ratios. Use IBISWorld.

Show the computations and summarize the information in an easy to read table.

Part II

Write a three-paragraph memo to comment on the ratios computed and how the company is doing relative to its industry.

  • Paragraph 1: What is the purpose of computing the ratios?
  • Paragraph 2: What did you learn?
  • Paragraph 3: Conclusion/summary of the information.

Address the memo to your instructor. Follow APA format. See sample at the following link:

Assignment Expectations

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. The suggested length is five to seven pages.

The following articles will shed more light on the regulation of financial reporting.

The accounting standards and standard setting bodies. Retrieved from

Diffen. Compare Anything. (n.d.). GAAP versus IFRS. Retrieved from

Sarbanes Oxley 101. (n.d.). Retrieved from

Seay, S. S. (2014). The economic impact of IFRS: A financial analysis perspective. Academy of Accounting and Financial Studies Journal, 18(2), 119–139. Available in the Trident Online Library.

Understanding and Evaluating Financial Performance

Ratio analysis is a common tool used to analyze and assess financial performance. Click on the following link for a brief introduction to ratio analysis and examples of categories of ratios often used in business.

At the site below, read the section “Tools for Financial Statement Analysis” and watch the related videos on the same page.

Walther, L. (2017). Chapter 16. Retrieved from