Starbucks Corporation Fiscal Year End Statements And The Income Classifications

1500 Words Dec 10th, 2016 6 Pages
Financial statements are records of the activities and give insight to the position of a particular business or entity. Such information is gathered and presented in a structured manner to be easily understood by potential investors as well as those needed to audit. Information needs to be laid out clearly in order to find misstatements or minor errors throughout. Within these financial statements are specific classifications of expenses as well as any paid interest and when interest or dividends are received. Knowing where and how to classify these components create a flow for any financial statement and also add a structure for all other reporting. This paper will examine the Starbucks Corporation fiscal year end statements and the income classifications throughout the annual reports given. Harold Averkamp defines operating expenses as “costs associated with a company’s main operative activities” (2016) which are in turn reported on their income statement. On page thirty-nine of the annual report, the income statement, or Consolidated Statements of Earnings, is found for each of the year ending periods. Listed under the heading, Fiscal Year Ended are the operating costs. Store, other, depreciation and general and administrative expenses are noted with amounts for each year. Income statements serve the purpose of tracking the income and expenses for a company to help gain a better overall idea of just how profitable they truly are. Spiceland et al. explain operating…

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