Analyzing Starbucks' Financial Statements Refer to the financial statements of Starbucks in the Appendix, especially footnote 1.
Question:
Analyzing Starbucks' Financial Statements Refer to the financial statements of Starbucks in the Appendix, especially footnote 1. Depreciation and amortization expense was $237,807,000 for the year ended September 28, 2003 according to the Consolidated Statement of Earnings. 1. What lives does Starbucks use for depreciating and amortizing its assets? 2. Suppose Starbucks extended the lives of all its depreciable assets by 50% so depreciation was smaller each year. Estimate the effect of this on net earnings reported in the year 2003. Assume that the average tax rate in the current income statement applied to this change in depreciation and that depreciation for financial reporting purposes was the same as that for tax purposes.
Step by Step Answer:
Introduction To Financial Accounting
ISBN: 0131479725
9th Edition
Authors: Charles T Horngren, John A Elliott