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 Download Financial Forecasting Template.Part 1Use the EDGAR | Company Filings (Links to an external site.)or Yahoo! Finance (Links to an external site.)database to download the last 10-Q 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:
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 2Then, 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:
Submit your completed Financial Forecasting Template to Waypoint.Accessibility Statement: If you have a disability that impacts your ability to successfully participate in this or any other course activity, please provide your instructor with your authorized Accommodation Request form from the Office of Student Access and Wellness so that they can discuss and arrange an alternative plan with you.Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.