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A - When looking up the finance chart for the stock price of starbucks over the

ID: 2773768 • Letter: A

Question

A - When looking up the finance chart for the stock price of starbucks over the last 5 years we can see that the chart in general is showing a stable uprising trend except a fall between April and July 2012, and then a started to rise between October 2012 to November 2013 which is also followed by a decrease until April 2014 from then continued to keep increasing till today.

B- Income statement for starbucks over last 3 years:

       

                                                   Sep 28, 2014                                         Sep 29, 2013                    Sep 30, 2012

Total Revenue

16,447,800  

14,866,800  

13,276,800

Gross Profit

9,589,000  

8,484,500  

7,463,500  

Net Income

2,068,100  

8,300  

1,383,800

From the above numbers we see that there is a continuous increase in the total revenue and the gross profit from September 2012 to September 2014, on the other hand, the net income shows a decrease from Sep 2012 to Sep 2013 and increases again from Sep 2013 to Sep 2014.

Q : Are A & B    consistent? Explain  

Total Revenue

16,447,800  

14,866,800  

13,276,800

Gross Profit

9,589,000  

8,484,500  

7,463,500  

Net Income

2,068,100  

8,300  

1,383,800

Explanation / Answer

No. stock price rising between oct 2012 and nov 2013 but net income is low in that period. thereafter stock price is decreasing but there in increase in net income