Integrative Case Starbucks 1.1 - Interpreting Financial Statement Relations

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 for20092012. The percentage change statements report the annual percentage change in each account from 2010 through 2012. Respond to the following questions.

w. Net earnings as a percentage of total revenues increased from 3.2% in scal 2009 to 10.4% in scal 2012. Identify the most important reasons for this change.