Details about a company’s investments appear in a number of places in the annual report. Use Starbucks Corporation’s Fiscal 2011 annual report to answer the following questions. Visit www.pearsonhighered.com/Horngren to view a link to Starbucks Corporation’s Fiscal 2011 annual report.

Requirements

1. What classifications of debt and/or equity security investments does Starbucks hold?

2. Give the breakdown of the investments Starbucks held at October 2, 2011.

3. Review Starbucks’ consolidated statement of cash flows for the year ended October 2, 2011. Identify each item related to the company’s debt and equity security investments, the amount of the item, and the section of the cash flow statement in which the item appears.

4. Review Note 1, specifically Short- term and Long-term Investments. How are Starbucks’ available-for-sale investments reported? How are Starbucks’ trading investments reported?