Details about a company’s cash flows appear in a number of places in the annual report. Use Starbucks Corporation’s Fiscal 2011 Annual Report to answer the following questions. Visit www.pearsonhighered.com/Horngren to view a link to Starbucks Corporation’s Fiscal 2011 annual report.
1. Which method does Starbucks use to report net cash flows from operating activities? How can you tell?
2. Starbucks earned net income during 2011. Did operations provide cash or use cash during 2011? Give the amount. How did operating cash during 2011 compare with 2010?
3. For the year ended October 2, 2011, did Starbucks pay cash dividends? If so, how much?
4. For the year ended October 2, 2011, did Starbucks use cash to purchase property, plant, and equipment? If so, how much?