Exhibit 1.29 presents common-size and percentage change balance sheets and Exhibit 1.30 (page 81) presents common-size and percentage change income statements for Starbucks for 20092012. The percentage change statements report the annual percentage change in each account from 2010 through 2012.

Respond to the following questions:

1. From 2009 through 2012, the proportion of total liabilities declined while the proportion of shareholders equity increased. What are the likely explanations for these changes?

Exhibit 1.29 Starbucks Corporation Common-Size and Percentage Change Balance Sheets (allow for rounding) (Integrative Case 1.1)