1. Why are leases important for Starbucks?
2. Why is lease accounting important for Starbucks?
3. Use the Starbucks financial statements for the year ended September 27, 2009 and the Starbucks Operating Lease Converter Preview the document to estimate Starbucks indebtedness related to leasing.

4. Using Starbucks financial statements for the year ended September 27, 2009 and your estimates including debt related to leases as calculated as above, calculate the following ratios: Return on Assets; Return on Invested Capital; Capital Intensity; Debt to Equity; Debt to Capitalisation and Cash Flow to Debt. To calculate these ratios use the 2009 year end data alone, do not average balance sheet items with 2008.

5. Donna Brooks, VP and Controller of Starbucks, wrote the corporations response letter to the IASB/FASB Exposure Draft on Lease Accounting. Discuss the significance of the areas covered in the comment letter and how the changes suggested by Starbucks might produce different reported levels of lease related debt.

6. Discuss how the new lease accounting rules will impact Starbucks financial statements. Discuss impacts to balance sheet, cashflow statement, income statement, as relevant.