This and similar cases in later chapters focus on the financial statements of a real company—Starbucks Corporation, a premier roaster and retailer of specialty coffee. As you work each case, you will gain confidence in your ability to use the financial statements of real companies. Visit www.pearsonhighered.com/Horngren to view a link to the Starbucks Corporation Fiscal 2011 Annual Report.

Requirements

1. How much in cash (including cash equivalents) did Starbucks Corporation have on October 2, 2011?

2. What were the company’s total assets at October 2, 2011? At October 3, 2010?

3. Write the company’s accounting equation at October 2, 2011, by filling in the dollar amounts:

Assets = Liabilities + Equity

4. Identify total net sales (revenues) for the year ended October 2, 2011. How much did total revenue increase or decrease from 2010 to 2011?

5. How much net income (net earnings) or net loss did Starbucks earn for 2011 and for 2010? Based on net income, was 2011 better or worse than 2010?

6. Calculate Starbucks Corporation’s return on assets as of October 2, 2011.

7. How did Starbucks Corporation’s return on assets compare to Green Mountain Coffee Roasters, Inc.’s return on assets?