SEC 10- K Paper
Acct 221
Lakesha Craft

SEC 10-K Paper

The first Starbucks coffee shop opened in 1971 in Seattle Washington. The coffee shop was founded by three partners. Jerry Baldwin and Zev Siegl were teachers and Gordon Bowker was a writer. The idea to have a coffee shop came about when a close friend was selling high quality coffee beans and equipment. After a matter of time, the partners decided to purchase the product from the grower. The coffee shop was named after the Nantucket Whaleship first mate from the novel Moby-Dick.

In 1982 Howard Schultz joined the company as the Director of Marketing and Retail Operations. He tried to convince the coffee shop partners to expand the business by …show more content…

Another method that can be used to get clues of the conditions of the company is ratios. There are many types of ratios that can be used for comparisons. Liquidity ratios will measure the ability to pay its debt obligations in short-term. The formula for current ratios is to divide the current assets by the current liabilities. This will give the current ratio. The current ratio is a reliable indicator of the liquidity in the working capital.

The acid test ratio is a calculation of the company’s short-term liquidity. The formula for this method is dividing the cash amount by short-term investments and net receivables by the current liabilities. A profitability ratio determines the income success of a company for a given period. This will also show the ability of the company to obtain equity financing and maintain debt.

A profit margin will determine the percentage of sales that results from net income. The formula for determining the profit margin is dividing the net income by net sales will equal the profit margin. An asset turnover determines how a company uses its assets to generate sales. The formula for this method is dividing the net sales by average assets will equal the asset turn over. Asset turnovers ratios are significantly among industries.

An overall measurement of profits is the return on assets. To configure this ratio is to divide the net income by average assets. Another way to measure profit is the