Use Starbucks Corporation’s financial statements to answer the following questions. Visit http://www.pearsonglobaleditions.com/Horngren to view a link to Starbucks Corporation’s Fiscal 2013 Annual Report.
1. Review the stockholders’ equity section of the balance sheet. Did Starbucks have any preferred stock at September 29, 2013?
2. Now review Note 11: Shareholders’ Equity. Is Starbucks authorized to issue preferred stock? If so, how much?
3. How much of Starbucks Corporation’s common stock was outstanding at September 29, 2013? How can you tell?
4. Examine Starbucks Corporation’s consolidated statements of cash flows. Did Starbucks pay any cash dividends during the year ending September 29, 2013? If so, how much?
5. Show how Starbucks Corporation computed basic earnings per share of $0.01 for 2013. (Ignore diluted earnings per share.)
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