STARBUCKS CORPORATION

Starbucks Corporation

Table of Contents

Question 12

Question 23

Question 34

Question 45

Question 55

Question 65

Question 76

Question 87

Question 97

Question 108

Question 118

Question 128

Question 1311

Question 1411

Starbucks Corporation

Question 1

Starbuck Corporation auditors are Deloitte & Touché LLP, they have their audit on annual basis , according to them external auditors can give them an independent opinion as The significance and relevance of external auditors is a primary and a fundamental part of the corporate governance External Audit examines and evaluates any of the information systems of an organization and an independent opinion on them, but companies usually require the evaluation of its financial information system independently to give validity to users of the product east, which has traditionally been associated with the term Audit External Audit of Financial Statements, which as noted is not entirely equivalent, it can be External Audit Tax Information System, External Audit Management Information System, External Audit Automatic Information System. External or Independent Audit seeks to determine the reasonableness, integrity and authenticity of the statements, records and documents and any information produced by the systems of the organization. An external audit conducted when it intends to publish the product information system examined in order to accompany him an independent opinion to give authenticity and allow users of that information to make decisions relying on the statements Auditor (Behar, 2007).

Without protection for outside investors, corporations will have difficulty in raising the necessary capital at a reasonable price, that is why Starbucks believes that their financial statements should be audited on yearly basis so to give their investors a complete unqualified report and if Starbucks fails to provide its investors their growth will be limited because outside investors will not be willing to turn their funds over to corporations. In this situation, firms have to find other ways to finance themselves, such as internal financing or bank financing. Certainly, these have their limits and disadvantages. Investor protection is an essential element of a well-functioning financial system. Scholars argue that effective financial systems provide well-developed markets that serve as a direct source of capital. Good corporate governance practices help to improve the confidence of investors, reduce the cost of capital, support the proper functioning of financial markets, and give rise to a more stable source of financing. In this last year audit also Deloitte & Touché LLP gives unqualified opinion and according to them Starbucks Corporation financial statements are free from any material omission and are in compliance with the required accounting framework. (Belverd, 2007).

Question 2

There has been not any subsequent events, errors and irregularities, illegal acts, or related-party transactions that have a material effect on the financial statements , With a consistent record of positive free cash flow, no meaningful debt maturities until 2017, and leverage able assets on the balance sheet, Starbucks appears to be in sound financial health. Debt/capital is 0.13 (0.63 including operating leases), EBITDA covers interest expense by more than 60 times, and the Cash Flow Cushion (cash on the balance sheet and future cash flow divided by debt and debt like obligations) ...