Details about a company’s liabilities appear in a number of places in the annual report. Visit www.pearsonhighered.com/Horngren to view a link to Starbucks Corporation’s Annual Report. Use Starbucks Corporation’s fiscal 2011 financial statements to answer the following questions.
1. Give the breakdown of Starbucks’ current liabilities at October 2, 2011.
2. Calculate Starbucks’ times-interest-earned ratio for the years ending October 2, 2011, and October 3, 2010. How did Starbucks do compared to Green Mountain Coffee Roasters in its ability to pay its interest expense?