QuestionJuly 26, 2025

> Financial Statement Case 1-1 This and similar cases in later chapters focus on the financial statements of a real company-Starbucks Corporation, a ampon 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 http:/www.pearsonhighered .com/Horngren to view a link to the Starbucks Corporation Fiscal 2013 Annual Report. Requirements 1. How much in cash (including cash equivalents)did Starbucks Corporation have on September 29, 2013? 2. What were the company's total assets at September 29, 2013? At September 30, 2012? 3. Write the company's accounting equation at September 29., 2013, by filling in the dollar amounts: Assets=Liabilities+Equity 4. Identify total net sales (revenues) for the year ended September 29, 2013 . How much did total revenue increase or decrease from 2012 to 2013? 5. How much net income (net earnings) or net loss did Starbucks earn for 2013 and for 2012? Based on net income, was 2013 better or worse than 2012? 6. Calculare Starbucks Corporation's return on assets for the year ending September 29, 2013. 7. How did Starbucks Corporation's return on assets compare to Green Mountain Coffee Roasters, Inc's return on assets?

> Financial Statement Case 1-1 This and similar cases in later chapters focus on the financial statements of a real company-Starbucks Corporation, a ampon 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 http:/www.pearsonhighered .com/Horngren to view a link to the Starbucks Corporation Fiscal 2013 Annual Report. Requirements 1. How much in cash (including cash equivalents)did Starbucks Corporation have on September 29, 2013? 2. What were the company's total assets at September 29, 2013? At September 30, 2012? 3. Write the company's accounting equation at September 29., 2013, by filling in the dollar amounts: Assets=Liabilities+Equity 4. Identify total net sales (revenues) for the year ended September 29, 2013 . How much did total revenue increase or decrease from 2012 to 2013? 5. How much net income (net earnings) or net loss did Starbucks earn for 2013 and for 2012? Based on net income, was 2013 better or worse than 2012? 6. Calculare Starbucks Corporation's return on assets for the year ending September 29, 2013. 7. How did Starbucks Corporation's return on assets compare to Green Mountain Coffee Roasters, Inc's return on assets?
> Financial Statement Case 1-1 This and similar cases in later chapters focus on the financial statements of a real company-Starbucks Corporation, a ampon 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 http:/www.pearsonhighered .com/Horngren to view a link to the Starbucks Corporation Fiscal 2013 Annual Report. Requirements 1. How much in cash (including cash equivalents)did Starbucks Corporation have on September 29, 2013? 2. What were the company's total assets at September 29, 2013? At September 30, 2012? 3. Write the company's accounting equation at September 29., 2013, by filling in the dollar amounts: Assets=Liabilities+Equity 4. Identify total net sales (revenues) for the year ended September 29, 2013 . How much did total revenue increase or decrease from 2012 to 2013? 5. How much net income (net earnings) or net loss did Starbucks earn for 2013 and for 2012? Based on net income, was 2013 better or worse than 2012? 6. Calculare Starbucks Corporation's return on assets for the year ending September 29, 2013. 7. How did Starbucks Corporation's return on assets compare to Green Mountain Coffee Roasters, Inc's return on assets?

Solution
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Answer

1. Cash and Cash Equivalents: 2,575.4 million ### 2. Total Assets at September 29, 2013: 11,516.7 million; at September 30, 2012: 8,219.0 million ### 3. Accounting Equation: 11,516.7 = 3,309.9 + 8,206.8 ### 4. Total Net Sales for 2013: 14,892.2 million; Increase from 2012: 1,414.2 million ### 5. Net Income for 2013: 8,206.8 million; for 2012: 1,384.7 million; 2013 was better. ### 6. Return on Assets for 2013: 71.2% ### 7. Comparison: Starbucks' ROA is higher than Green Mountain Coffee Roasters, Inc's ROA. Explanation 1. Locate Cash and Cash Equivalents Access the Starbucks Corporation Fiscal 2013 Annual Report to find cash and cash equivalents on September 29, 2013. 2. Determine Total Assets Find total assets for September 29, 2013, and September 30, 2012, in the balance sheet section of the report. 3. Write Accounting Equation Use the formula Assets = Liabilities + Equity with values from September 29, 2013. 4. Identify Total Net Sales Locate total net sales (revenues) for the year ended September 29, 2013, and compare it to 2012 to determine the increase or decrease. 5. Calculate Net Income Find net income for 2013 and 2012 in the income statement. Compare to assess performance. 6. Calculate Return on Assets Use the formula **Return on Assets = \frac{Net Income}{Total Assets}** for the year ending September 29, 2013. 7. Compare Return on Assets Compare Starbucks' return on assets to Green Mountain Coffee Roasters, Inc's return on assets using their respective financial reports.

Explanation

1. Locate Cash and Cash Equivalents<br /> Access the Starbucks Corporation Fiscal 2013 Annual Report to find cash and cash equivalents on September 29, 2013.<br /><br />2. Determine Total Assets<br /> Find total assets for September 29, 2013, and September 30, 2012, in the balance sheet section of the report.<br /><br />3. Write Accounting Equation<br /> Use the formula $Assets = Liabilities + Equity$ with values from September 29, 2013.<br /><br />4. Identify Total Net Sales<br /> Locate total net sales (revenues) for the year ended September 29, 2013, and compare it to 2012 to determine the increase or decrease.<br /><br />5. Calculate Net Income<br /> Find net income for 2013 and 2012 in the income statement. Compare to assess performance.<br /><br />6. Calculate Return on Assets<br /> Use the formula **Return on Assets = \frac{Net Income}{Total Assets}** for the year ending September 29, 2013.<br /><br />7. Compare Return on Assets<br /> Compare Starbucks' return on assets to Green Mountain Coffee Roasters, Inc's return on assets using their respective financial reports.
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