1. Chapter 1: Integrative Case 1.1 Starbucks, Introduction: c, i, l (p. 73) using case study analysis.
c. Describe how ‘‘cash’’ differs from ‘‘cash equivalents.’’
i. What types of expenses does Starbucks likely include in (1) cost of sales, (2) occupancy costs, and (3) store operating expenses?
Statement of Cash Flows:
l. Statement of Cash Flows: Why does net income differ from the amount of cash flow from operating activities?
2. Chapter 2: Questions and Exercises: 2.9 a (p. 135): Computation of Income Tax Expense. A firm’s income tax return shows $50,000 of income taxes owed for 2009. For financial reporting, the firm reports deferred tax assets of $42,900 at the beginning of 2009 and $38,700 at the end of 2009. It reports deferred tax liabilities of $28,600 at the beginning of 2009 and $34,200 at the end of 2009. a. Compute the amount of income tax expense for 2009.
3. Chapter 2: Integrative Case 2.1 Starbucks, Taxes: a (p. 145):
a. Assuming that Starbucks had no significant permanent differences between book income and taxable income, did income before taxes for financial reporting exceed or fall short of taxable income for 2012? Explain.
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