Working Capital if Starbucks Has an Increase Term Paper

Total Length: 303 words ( 1 double-spaced pages)

Total Sources: 2

Working Capital

If Starbucks has an increase of 20% in its revenue next year, this will affect a number of other elements of the financial statements. Often in budgeting, other line items are assumed to increase roughly in line with revenues. Thus, the company will see revenues of $11,558.4 million next year. Operating expenses will increase by the same percentage, so that the operating profit will also be increased by 20% to $2,073.

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6 million. However, the assumptions need to build in how much of an increase is expected in same-store sales, because that increase will not translate to certain cost increases. For example, a 20% increase in revenue with 10% coming from an increase in same store sales means that some administration expenses might only have increased 10% in the year. Thus, increases in efficiency will need to be taken into consideration when setting.....

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"Working Capital If Starbucks Has An Increase", 01 December 2012, Accessed.19 May. 2025,
https://www.aceyourpaper.com/essays/working-capital-starbucks-increase-76783