Visit www. pearsonhighered. com/ Horngren to view a link to Starbucks Corporation’s Fiscal 2011 annual report. Refer to the Starbucks Corporation ­financial statements, including Notes 1 and 6. Answer the following questions.

Requirements

1. Which depreciation method does Starbucks Corporation use for reporting in the financial statements? What type of depreciation method does the company probably use for income tax purposes?

2. What was the amount of depreciation and amortization expense for year ending October 2, 2011?

3. The statement of cash flows reports the purchases of property, plant, and equip-ment. How much were Starbucks’ fixed asset cash purchases during year ending 2011? Did Starbucks’ record any proceeds from the sale of fixed assets?

4. What was the amount of accumulated depreciation at October 2, 2011?

5. Compute Starbucks’ asset turnover ratio for year ending October 2, 2011. How does Starbucks’ ratio compare to Green Mountain Coffee Roasters, Inc.?