The first case at the end of this chapter and each of the remaining chapters is a series of integrative cases involving Starbucks. The series of cases applies the concepts and analytical tools discussed in each chapter to Starbucks’ financial statements and notes. The preparation of responses to the questions in these cases results in an integrated illustration of the six sequential steps in financial statement analysis discussed in this chapter and throughout the book.

Relations between Financial Statements

a. Prepare an analysis that explains the change in Retained Earnings from $2,189.4 at the end of fiscal 2007 to $2,402.4 at the end of fiscal 2008.

b. Prepare an analysis that explains the changes in Property, Plant, and Equipment from $5,306.5 at the end of fiscal 2007 to $5,717.3 at the end of fiscal 2008 and Accumulated Depreciation from $2,416.1 at the end of fiscal 2007 to $2,760.9 at the end of fiscal 2008. You may need to deduce certain amounts that Starbucks does not disclose. For simplicity, assume that all of the depreciation and amortization expense is depreciation.