Module 2 – Case
The 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.
· Provide a brief introduction to the company and include a link to the company’s website.
· Distinguish between an expense (expired cost) and an asset.
· Distinguish between current and long-term assets.
· Distinguish between current and long-term liabilities.
· Review Starbuck’s balance sheet and provide two examples of each of the above categories.
· Discuss retained earnings and how income or loss and dividends affect this account. Review Starbucks’s retained earnings account and explain how it changed during the past two years.
· How much debt does Starbucks have? Is the amount of debt high? How do we know if it is considered high?
· What is the difference between an annual report and a 10-k?
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 pages
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