Use Starbucks Corporations financial statements to answer the following questions. Visit www.pearsonhighered.com/Horngren to view a link to

Question:

Use Starbucks Corporation’s financial statements to answer the following questions. Visit www.pearsonhighered.com/Horngren to view a link to Starbucks Corporation’s Fiscal 2011 Annual Report.

Requirements

1. Review the stockholders’ equity section of the balance sheet. Did Starbucks have any preferred stock at October 2, 2011?

2. Now review Note 11: Shareholders’ Equity. Is Starbucks authorized to issue preferred stock? If so, how much?

3. How much of Starbucks Corporation’s common stock was outstanding at October 2, 2011? How can you tell?

4. Examine Starbucks Corporation’s consolidated statements of cash flows. Did Starbucks pay any cash dividends during the year ending October 2, 2011? If so, how much?

5. Show how Starbucks Corporation computed basic earnings per share of $ 1.66 for 2011. (Ignore diluted earnings per share.)

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...