The Financial Statement Case at the end of each chapter uses the Starbucks Corporation 2013 Annual Report which is located under the Course Syllabus tab. In Financial Statement Case 6-1 (p. 371), you will examine Starbucks' inventory notes, compute its inventory turnover rate and days' sales in inventory, and compare these ratios to those of Green Mountain Coffee Roasters'. Green Mountain Coffee Roasters Financial Statements are located in Appendix A in the back of your text.

1. Which inventory costing method does Starbucks use? How does Starbucks value its inventories? See Note 1.

2. By using the cost of goods sold formula, you can compute net purchases, which are not reported in the Starbucks statements. How much were Starbuck's inventory purchases during the year ended September 29,2013?

3. Determine Starbuck's inventory turnover and days' sales in inventory for the year ended September 29,2013 ( round each ratio to one decimal place) How do Starbacks's inventory turnover and days' sales in inventory compare with Green Mountains Coffee Roasters, Inc's for the year ended September 28,2013? Explain