January 19, 2012
The succeeding content of this executive summary provides an analysis on Starbucks’ Corporation profit using the company’s most three most recent annual reports. Team B uses “the information contained in the company’s balance sheet and income statement noting that annual reporting period and fiscal year mean year-end numbers. Additionally, included is the company history, audit for the company, stock exchange listing, cash and cash equivalents at the end of its 2 most annual reporting periods. Moreover, total current assets, largest current assets, company’s total assets at the end of its 2 most recent annual reporting years. Furthermore, accounts payable, total current liabilities, two largest current liabilities, company’s total liabilities at the end of its 2 most recent annual reporting periods. Finally, company’s revenues and net income for the last 3 annual reporting periods, and the change in dollars in the company’s net income from its most recent annual reporting period to the previous annual reporting period” (Axia College, 2012, Week Two Course Syllabi).
Research shows coffee is the most popular morning beverage for business executive, college students, young adults, and individuals in general. In 1971 the popularity of Starbucks emerged in Seattle Washington along with its founders Zev Segal, Jerry Baldwin, and Gordon Bowker. “The Pike Place Market” was the first store located in downtown Seattle Washington. Such place was known for selling one of the best roasted whole coffee beans to be found in the city. The name Starbucks originated from the old novel Moby Dick. The novel based its content from the traditions of early sea traders of coffee. The Syrians Eye based on a mermaid was a seaman beauty and romance of the sea. Today the image of the mermaid on coffee mugs, cups, and t-shirts can be purchase in each coffeehouse. In 1981, the company was acquired by Howard Schultz whom today represents Starbucks as the chairperson, president, and chief executive officer. What brought Howard Schultz to his decision was when he visited the store in Seattle, had his first cup of Sumatra and decided this was something with potential. In 1983 Howard wanted to bring back the Italian tradition of coffee knowledge and atmosphere back to the United States. His travels to Italy inspired him to keep the tradition of community and place to gather and talk among each other. Howard Schultz at one point left Starbucks to start his own coffeehouse IL Giornale, but in August 1987 returned with the help of investors to purchase Starbucks Coffee Company. In 1984 Howard convinced his investors to try a new type of coffee in Starbucks. The coffee was a success and became a trade mark of the most popular coffee drink known as the Caffe Latte. With the success of the company thoughts of expansion were in mind and in 1987 Howard opened up the first stores outside of the Seattle market. The two cities first to see the new coffeehouses were Chicago and Vancouver British Columbia. Auditor, Stock, and Cash and Cash Equivalents
As the Starbucks Corporation grew in its popularity so did its profits. In 1991 Starbucks became the first company to offer stock options to its part-time employees in the United States. Starbucks did manage to offer its IPO with common stock to the public on the NASDAQ stock market in 1992. The ticker symbol awarded to the company on NASDAQ was “SBUX.” As a growing company, Starbucks needs to maintain compliancy’s with the financial and accounting processes of the company. Quarterly reviews and annual audits are done regularly by Deloitte and Touche LLP (Audit Committee), who is the company’s independent registered public accounting firm. Deloitte and Touche LLP reporting processes must follow SEC and Sarbanes-Oxley compliances for accurate fiscal year earnings and reports. With the...