Go to the IBIS database (attached) and find information for coffee store franchises in the US Specialized
Industry iExpert Summaries. 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?
