The Accounting History of Starbucks As we all know, Starbucks is a major coffee producing chain that is well-known for their pricey but delicious beverages. Starbucks began as a seller of coffee beans and coffee making equipment and soon took off with the help of Howard Schultz, the Director of Retail Operations, to making and selling drinks. The three original owners, Jerry Baldwin, Zev Siegel, and Gordon Bowker, who got the idea from Alfred Peet, of Peet’s Coffee fame, sold their small company to Howard who expanded the company a crossed the United States and eventually internationally (Coffee.org, 2014). There are currently more than 21,000 stores in 65 countries around the world with over 11,000 locations in the United States (Starbucks.com,
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One of the main equations we have learned over and over again is that assets minus liabilities are equal to stockholders’ equity. This equation involves much of the information found on the balance sheet, another important key to the financial statements. In this case assets can be defined as any economic resource that is either tangible or intangible that holds a future economic value. Examples of assets include cash, investments, accounts receivable, inventory, supplies, and buildings land and equipment. Obviously, cash is the most liquid asset and short term investments are generally the next most liquid assets because they can be converted quickly to cash. There is also a separation on the balance sheet between current assets and all other assets. These combine to equal total assets. In 2014, Starbucks had $10,752,900 in total assets and $4,168,700 in current assets (Nasdaq, 2014). In the year ended December 2013, Starbucks had total assets of $10,255,200 and current assets of $3,759,400 (Nasdaq, 2014). These numbers by themselves do not give you that much valuable information but when compared to the liabilities and having a positive stockholders’ equity in the end, proves that this is a profitable company and one that investors would be happy to invest
One of the main equations we have learned over and over again is that assets minus liabilities are equal to stockholders’ equity. This equation involves much of the information found on the balance sheet, another important key to the financial statements. In this case assets can be defined as any economic resource that is either tangible or intangible that holds a future economic value. Examples of assets include cash, investments, accounts receivable, inventory, supplies, and buildings land and equipment. Obviously, cash is the most liquid asset and short term investments are generally the next most liquid assets because they can be converted quickly to cash. There is also a separation on the balance sheet between current assets and all other assets. These combine to equal total assets. In 2014, Starbucks had $10,752,900 in total assets and $4,168,700 in current assets (Nasdaq, 2014). In the year ended December 2013, Starbucks had total assets of $10,255,200 and current assets of $3,759,400 (Nasdaq, 2014). These numbers by themselves do not give you that much valuable information but when compared to the liabilities and having a positive stockholders’ equity in the end, proves that this is a profitable company and one that investors would be happy to invest