This and similar cases in later chapters focus on the financial statements of a real company—Starbucks Corporation, a premier roaster and retailer of specialty coffee. As you work each case, you will gain confidence in your ability to use the financial statements of real companies. Visit http://www.pearsonglobaleditions.com/Horngren to view a link to the Starbucks Corporation Fiscal 2013 Annual Report.
Requirements
1. How much in cash (including cash equivalents) did Starbucks Corporation have on September 29, 2013?
2. What were the company’s total assets at September 29, 2013? At September 30, 2012?
3. Write the company’s accounting equation at September 29, 2013, by filling in the dollar amounts: Assets = Liabilities + Equity
4. Identify total net sales (revenues) for the year ended September 29, 2013. How much did total revenue increase or decrease from 2012 to 2013?
5. How much net income (net earnings) or net loss did Starbucks earn for 2013 and for 2012? Based on net income, was 2013 better or worse than 2012?
6. Calculate Starbucks Corporation’s return on assets for the year ending September 29, 2013.
7. How did Starbucks Corporation’s return on assets compare to Green Mountain Coffee Roasters, Inc.’s return on assets?