The Financial Statement Case at the end of each chapter uses the Starbucks Corporation 2013 Annual Report which is located under the Course Syllabus tab. In Financial Statement Case 5-1 (p. 321), you will examine the inventory, income statement and gross profit percentage of Starbucks Corporation.
1. What was the value of the company's inventory at September 29,2013?
2. Review Note 5 (specifically inverntories) in the Note to consolidated financial statements. What do Starbucks' inventories consist of?
3. What was the amount of Starbucks cost of goods sold(cost of sales) for the year ending September 29, 2013, and the year ending September 30, 2013?
4. What income statement format does Starbucks use? Explain
5. Compute Starbuck's gross profit percentage for the year ending September 29,2013, and the year ending September 30,2012. Did the gross profit percentage improve, worsen, or hold steady? Assuming the industry average for gross profit percentage is 58.58%, how does Starbucks compare in the industry?