1. Group 5: Amanda Grieco Tevin Chapman James McCarty

2. INDUSTRY: Specialty Coffee PRIMARY PRODUCTS: Coffee, Handcrafted Beverages, Merchandise, Fresh Food, and Consumer Products. RAW MATERIALS: Coffee Beans, Dairy, Cups/Lids, Food and Drink Ingredients, and Teas. COMPANY SIZE: SALES: $14.9 Billion ASSETS: $11,516.7 million EMPLOYEES: 182,000 worldwide

3. LOCATION: Seattle, Washington 20,891 stores in 64 countries OTHER AFFILIATIONS: Seattle’s Best and MANY orgs! IMAGE CONVEYED? …Sustainable growth by a company that has core values to maintain its image and control of its products and distribution. SEGMENTS AND FUNCTIONAL CONTENTS – Same as 10-K with intro from CEO

4. KEY ECONOMIC FACTORS: Growth rates Interest rates Levels of employment Price stability LIFE CYCLE: Growth Stage FACTORS OF SUCCESS: Quality of products Shop Design Social Responsibility Customer loyalty rewards.

5. STANCE OF SUCCESS: Exceeded all of their expectations in all aspects BUSINESS RISKS: Economic conditions Not successfully implementing important strategic initiatives Increases in the cost of high-quality Arabica coffee beans Interruption of supply chain Failing to meet market expectations

6. NOTABLE ACCOUNTING CONSIDERATIONS: Property, Plant, and Equipment and Definite-lived Assets Goodwill and Indefinite-lived Intangible Assets Income Taxes Litigation Accruals LEGAL AND REGULATORY MATTERS: Starbucks VS. Kraft Foods SOCIAL MATTERS: Community Service Community Stores Youth Leadership Farming Communities Diversity and Inclusion Starbucks Foundation

7. GOVERNANCE Revised November 5, 2011 Board of Directors SARBANES-OXLEY ACT COMPLIANCE Deloitte & Touche, LLP Unqualified Opinion

8. Delivered record performance and exceeded expectations on almost all fronts. $14.9 billion in Revenues 12% increase!

9. GROWTH OVER NEXT YEAR: According to 4-Traders, the financial ratios have stated an estimated company value of $57,533 M and $57,644 M in fiscals 2014 and 2015, respectively. 1,500 net new stores Product Growth: Tevana Tea® Fine Teas + Tea Bars, La Boulange™ bakery items Evolution Fresh™ juice lines

10. SOURCES AND VALUE OF CAPITAL: $750 million unsecured, revolving credit $150 million may be used for issuances of letters of credit Approved maximum of $1 billion of unsecured commercial paper notes Approximately 18,470 shareholders of record 26,359,511 shares As of March 19, 2014, the market rate went up 2.14% at $76.20

12. CAPITAL MARKET RESPONSE: Financial analysts state a “buy” status and a “B” rating on stocks. COMPETITOR COMPARISON: Revenues - 5.6% higher than the industry Debt-to-Equity ratio - below the industry Company’s shares - risen by 27.04%

13. MAJOR TRANSACTION CYCLES: SALES AND COLLECTION CYCLE ACQUISITION AND PAYMENT CYCLE PAYROLL AND PERSONNEL CYCLE INVENTORY AND WAREHOUSING CYCLE CAPITAL ACQUISITION AND REPAYMENT CYCLE

14. Selected Ratios SBUX 2013 SBUX 2012 SHORT-TERM DEBT PAYING Cash Ratio.60.92 Quick Ratio.711.14 Current Ratio1.021.9 LIQUIDITY ACTIVITY RATIOS Accounts Receivable Turnover21.0121.68 Days to Collect A/R17.3816.84 Inventory Turnover5.744.68 Days to Sell Inventory63.5577.95 ABILITY TO MEET LONG-TERM OBLIGATIONS Debt to Equity1.57.6 Times Interest Earned-11.5961.08 PROFITABILITY RATIOS Earnings Per Share – Basic.011.83 Gross Profit Percent.57.56 Profit Margin-.03.15 Return on Assets-.02.25

15. FRAUDLENT REPORTING OPPORTUNITIES: Segment Reporting Material Misstatements Raw Materials – Coffee Beans Distribution Production Stock Price Pressures Litigations REDUCTION OF ASSESSED CONTROL RISK Can be slightly reduced Core values of maintaining control of brand and distribution Effective segregation of duties Proper documentation and recording procedures

16. Based on the information contained in the 2013 Annual Report, the financial ratios assessed, and the previous auditor’s history with Starbucks, we expect an unqualified opinion will be issued.