Annual Report Essay

Submitted By tstokes31
Words: 412
Pages: 2

Starbucks Annual Report: Fiscal Year 2012
Terri Gowins-Stokes
Amber Sheeler
Accounting 100
May 31, 2013

Annual Reports are an insight into the company’s financial records which allows stockholders and investors to see how their money is working. These features were important because they tell the expenses and the revenue that the company generated for that year. After reviewing the 2012 Annual Report for Starbucks, a few important sections stood out the most, net revenue, operating income and operating cash flow and expenditures.
Net revenue is the amount of money that was generated during that year. Starbucks reported that its US revenue increased 10% or $871 million dollars. These revenues included company operated stores and licensed stores. The opening on new stores produced incremental increases as well that contributed to the revenue increase. This growth was a $1.6 billion dollar increase for 2012.
The operating income is the income generated by the equity investees. This also had a slight increase of 0.5%. This was greatly attributed to the interest that generated in stocks. This operating income is the income that was not generated by any of the stores. This income relies solely with the stock market every fluctuation included.

The next section is operating cash flow. This is the cash that works with and for the company. Cash provided by operating activities was $1.8 billion for fiscal year 2012, compared to $1.6 billion for fiscal year 2011. The slight increase was primarily attributable to an increase in net earnings in fiscal 2012. This was partially offset by a net increase in our working capital accounts,…