main purpose of this module is to review the balance sheet in more detail. Go to http://www.starbucks.com and click on the investor relations link. Locate the annual reports for the past two years. Review Starbucks’ financial report, review background material, and do additional research as needed to write an essay where you incorporate answers to the questions below.

Ibis World is a proprietary database providing industry research. It is accessible via the Trident Online Library. The database is found under additional library resources and offers a lot of interesting industry information including financial information.

Case Assignment

Questions

• Go to the IBIS database and find information for coffee store franchises in the iExpert Industry Summary. Add three facts about the industry and comment on the information relative to Starbucks.
• Distinguish between an expense (expired cost) and an asset.
• Distinguish between short-term and long-term assets.
• Distinguish between short-term and long-term liabilities.
• Review Starbucks’ balance sheet and provide two examples of each of the above categories (short-term assets, long-term assets, short-term liabilities, and long-term liabilities).
• How much debt does Starbucks have? Is the amount of debt high? How do we know if it is considered high? (Hint: Find financial information in IBIS World.)
• Discuss retained earnings and how income or loss and dividends affect this account. Review Starbucks’ retained earnings account and explain how it changed during the past two years. Show details.
• What is the difference between an annual report and a 10-k? Do companies have to publish both reports? Does Starbucks publish both?
• Who were the auditors for the financial statements?

Assignment Expectations

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. The suggested length is five to seven pages.

Required Reading:

The emphasis is on the balance sheet, but we need to understand how the four financial statements are connected. Let us start with two brief videos describing financial statements.

AccountingWITT. (2011, Oct. 1). Financial Statements – An Introduction. [Video file]. Retrieved from