The notes that accompany a company's financial statements provide informative details that would clutter the amounts and descriptions presented in the statements. Refer to the financial statements of Starbucks and the accompanying Notes to Consolidated Financial Statements in Appendix A.

\section*{Instructions}

Answer the following questions. (Give the amounts in thousands of dollars, as shown in Starbucks' annual report.)

(a) What did Starbucks report for the amount of inventories in its Consolidated Balance Sheet at September 29, 1996? At October 1, 1995?

(b) Compute the dollar amount of change and the percentage change in inventories between 1995 and 1996. Compute inventory as a percentage of current assets for 1996.

(c) How does Starbucks value its inventories? Which inventory cost flow method does Starbucks use?

(d) What are the costs of sales (cost of goods sold) reported by Starbucks for 1996, 1995, and 1994? Compute the ratio of cost of sales to net sales in 1996.