Refer to the fiscal 2011 financial statements for Starbucks either at http://investor.starbucks.com or on the SEC’s EDGAR Web site. Assume that Starbucks uses the periodic inventory method.
1. Compute the amount of merchandise inventory purchased during the year ended October 2,
2011. Assume that 80% of the costs listed under “Cost of sales including occupancy costs” are cost of sales. The other 20% are occupancy costs.
2. Compute the inventory turnover for Starbucks for the year ended October 2, 2011.
3. Calculate the gross margin percentage for each of the last 3 years. Use total net revenues and cost of sales including occupancy costs to compute the gross margin. Comment on any changes.