Annual Report Project

Annual Report Project-Starbucks Name: Course: Professor Name: (February 23, 2012) .  Main sections of the annual report The main sections of the annual report indicate the big picture of the financial report. The common sections are auditor’s report, financial statements, notes to the financial statements and the management discussion and analysis (Investor.starbucks.com., 2009). The auditors’ report is critical in the Starbucks financial report in that in indicates the accuracy of the numbers used. Auditors highlight future concerns of the company by all the stakeholders. The editors basically indicates the direction of the company, whether declining or inclining and the probable areas of improvement (Investor.starbucks.com., 2009). Financial reports in the Starbuck are critical, in that they establish the income statement, balance sheet and statements on cash flows. This is critical in identifying the actual position of Starbuck Coffee Company in the market. The notes to the financial statements indicate the potential challenges with the numbers used in the report and the means in which the editors arrived at the numbers (Investor.starbucks.com., 2009). This is essential in maintaining accuracy of the annual reports in the Starbuck Coffee Company. The section detailing the management discussion and analysis is critical in that it identifies rising and falling of the financial results. Factors affecting the operations of Starbuck Coffee Company are closely analyzed and probable solutions indicated. Factors influencing company’s finances during the year There are a number of factors that influenced the finances of Starbuck in the year two thousand and nine. This in turn shaped the capital structure within the company. Starbuck Coffee Company critically used the finances in a preset model. The company utilized various sources of money (Investor.starbucks.com., 2009). The factors that shaped the financial were business risk, financial flexibility, growth rate, market conditions, management style and the taxation. Business risk experienced by the Starbuck Coffee Company indicated the risk associated with firm’s operations leaving out the debt factor. Starbuck Coffee Company experienced fluctuating prices in the global coffee. This shaped the financial positions of the Starbuck Coffee Company. Tax exposure of the Starbuck Coffee Company shaped significantly the financial statements. This is the law and regulations applicable to coffee and coffee products (Investor.starbucks.com., 2009). Financial flexibility of the Starbuck Coffee Company influenced the financial accounts. This reflects that the lower the debt ratio the better and flexible the company is. This enables the company withstand difficult economic periods. Management style in the Starbuck Coffee Company shaped the financial statements significantly. Leaders associated with conservative leadership are less likely to indulge the firm into debts. Aggressive leaders are associated with rapid growth translatin...