Variance Analysis

 

To begin your assignment, download the Financial Forecasting Template

Use the EDGAR | Company Filings or Yahoo! Finance database to download the last 10-Q from Starbucks into Excel.

In the Variance Analysis project,

• Complete the Variance Analysis Sheet on the appropriate tab in the Financial Forecasting Template, using the downloaded data.
• Calculate a quarterly variance analysis using the Variance Analysis tab of the Financial Forecasting Template (the same template you used in Week 3). Complete the following in your variance analysis:
  • In the Excel template, insert the line items.
  • In Column C, (Previous Quarter, 20NN) enter the previous quarter’s (previous to the most recent quarter) numbers as the budget.
  • In Column D, (Current Quarter, 20NN) enter the current (most recent) quarter’s actual numbers.
  • In Column E, the spreadsheet will calculate the dollar difference between the budget and actual numbers.
  • In Column F, the spreadsheet will calculate the percentage change.
  • In Column G, provide a rationale for the variances.

Note: This needs to be an MBA level of analysis. 1- or 2-line items in the variance analysis are significantly below expectations. You must have at least 10 or more-line items in your variance analysis.