Refer to the financial statements and the Notes to Consolidated Financial Statements of Starbucks, Inc., in Appendix A.

\section*{Instructions}

Answer the following questions:

(a) What were the total cost and book value of property, plant, and equipment at September 29,1996 ?

(b) What method or methods of depreciation are used by Starbucks for financial reporting purposes?

(c) What was the amount of depreciation and amortization expense for each of the 3 years 1994-1996?

(d) Using the statement of cash flows, what are the amounts of property, plant, and equipment purchased (capital spending) in 1996 and 1995?

(e) Read Starbucks' note on leases. Does the company primarily engage in capital leases or operating leases? What are the implications for analysis of its financial statements?