Obtain Starbucks' 2015 annual report either using the “Investor Relations” portion of its website (do a web search for Starbucks investor relations) or go to http://www.sec.gov and click “Search for company filings” under “Filings and Forms (EDGAR).”

Required:

1. What classifications are used by Starbucks to value its inventory?

2. How does Starbucks value its inventory?

3. What is the amount of inventory write-downs for 2015? Can you tell if Starbucks records inventory write-downs using the direct or allowance method?