Module 2 – Background

BALANCE SHEET

Required Background Material

The emphasis is on the balance sheet, but we need to understand how the four financial statements are connected. Let us start with two brief videos describing financial statements.

AccountingWITT. (2011, Oct. 1). Financial Statements – An Introduction. [Video file]. Retrieved from https://www.youtube.com/watch?v=dqOCRIcapoI&list=PLBvbcPpX_6wSF3UQwLxdRNJeK4cSGWkx8&index=21

AccountingWITT. (2011, Oct. 20). Financial Statements – Interconnectivity. [Video file]. Retrieved from https://www.youtube.com/watch?v=9OX3Cnd35LE&index=26&list=PLBvbcPpX_6wSF3UQwLxdRNJeK4cSGWkx8

Next, view the video below and read a succinct explanation for an introduction to the balance sheet.

The Motley Fool. (n.d.). Balance Sheet. Retrieved from http://wiki.fool.com/Balance_sheet

Cliqvid. (2013, Feb.13). What is a Balance Sheet? [Video File]. Retrieved from https://www.youtube.com/watch?v=ixCPM5HznRU

It is now time for a somewhat more comprehensive overview of a balance sheet. At this time it is sufficient to review the section on the balance sheet.

Baruch College’s Guide to Financial Statements. [Interactive Presentation]. (2008). Retrieved from http://www.baruch.cuny.edu/tutorials/statements/view_tutorial.html

The Securities and Exchange Commission (SEC) also has an excellent guide to financial statements on its website.

SEC. Beginners’ Guide to Financial Statements. (n.d.) Retrieved from http://www.sec.gov/investor/pubs/begfinstmtguide.htm

Suggested Resources

Accounting Coach. (n.d.). Dictionary of Accounting Terms. Retrieved from http://www.accountingcoach.com/terms

Walther, L. M. (2015). Principles of accounting: A complete online text. Retrieved from http://www.principlesofaccounting.com/ . Note that there are also many useful videos associated with Dr. Walther’s textbook.

Module 2 – Case

BALANCE SHEET

Case Assignment

The main purpose of this module is to review the balance sheet in more detail. Go to http://www.starbucks.com and click on the investor relations link. Locate the annual reports for the past two years. Review Starbucks’ financial report, review background material, and do additional research as needed to write an essay where you incorporate answers to the questions below.

Questions

• Provide a brief introduction to the company and include a link to the company’s website.
• Distinguish between an expense (expired cost) and an asset.
• Distinguish between current and long-term assets.
• Distinguish between current and long-term liabilities.
• Review Starbuck’s balance sheet and provide two examples of each of the above categories.
• Discuss retained earnings and how income or loss and dividends affect this account. Review Starbucks’s retained earnings account and explain how it changed during the past two years.
• How much debt does Starbucks have? Is the amount of debt high? How do we know if it is considered high?
• What is the difference between an annual report and a 10-k?

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.

Rubric Name: MBA/MSHRM/MSL Case Grading Rubric for Quantitative Business Courses -Timeliness v1

Criteria Level 4 – Excellent Level 3 – Proficient Level 2 – Developing Level 1 – Emerging Assignment-Driven Criteria 19 points Demonstrates mastery covering all key elements of the assignment in a substantive way. 18 points Demonstrates considerable proficiency covering all key elements of the assignment. 17 points Demonstrates partial proficiency covering all key elements of the assignment. 16 points Demonstrates limited or poor proficiency covering all key elements of the assignment. Presentation, Computation, and Relevance of Quantitative Information 10 points Demonstrates mastery in presenting quantitative information in a format appropriate for the discipline. Supporting computations are relevant and accurate. 9 points Demonstrates considerable proficiency in presenting quantitative information in a format appropriate for the discipline. Supporting computations are mostly relevant and accurate. 8 points Demonstrate partial proficiency in presenting quantitative information in a format appropriate for the discipline. Supporting computations are not necessarily relevant and somewhat misleading. 7 points Demonstrates limited or poor proficiency in presenting quantitative information in a format appropriate for the discipline. Supporting computations are not relevant, misleading or absent. Critical Thinking 10 points Analyzes quantitative and qualitative information as the basis for deep and thoughtful discussion, drawing insightful, carefully qualified conclusions from this work. 9 points Analyzes quantitative and qualitative information as the basis for competent and thoughtful discussion, drawing reasonable and appropriately qualified conclusions from this work. 8 points Analyzes quantitative and qualitative information as the basis for workmanlike (without inspiration or nuance, ordinary) discussion, drawing plausible conclusions from this work. 7 points Analyzes quantitative and qualitative information as the basis for tentative or limited discussion; and is hesitant or uncertain about drawing conclusions from this work. Business Writing 6 points Demonstrates mastery and proficiency in written communication to an appropriately specialized audience. 5 points Demonstrates considerable proficiency in written communication to an appropriately specialized audience. 4 points Demonstrate partial proficiency in written communication to an appropriately specialized audience. 3 points Demonstrates limited or poor proficiency in written communication to an appropriately specialized audience. Timeliness 5 points Assignment submitted on time or collaborated with professor for an approved extension on due date. 3 points Assignment submitted 1-2 days after module due date. 2 points Assignment submitted 3-4 days after module due date. 0 points Assignment submitted 5 or more days after module due date. Overall Score Level 45 or more Level 40 or more Level 35 or more Level 1 0 or more