Obtain Starbuckss 2017 annual report either using the Investor Relations portion of its web site (do a
Question:
Obtain Starbucks’s 2017 annual report either using the “Investor Relations” portion of its web site (do a Web search for Starbucks investor relations) or go to http://www.sec.gov and click “Search for company filings” under “Filings and Forms (EDGAR).”
Required:
1. (a) What were the cash and cash equivalents at the end of 2017? What does the company classify as cash equivalents? (b) Why are cash and cash equivalents combined into one amount on the balance sheet?
2. What were the trade accounts receivable (net) at the end of 2017? At the end of 2016?
Given Starbucks’s large volume of sales, why isn’t the receivables larger?
3. What amount of its accounts receivable does Starbucks believe is uncollectible?
4. What method does Starbucks use to estimate its allowance for doubtful accounts? Is this method allowable by GAAP?
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
1 a The cash and cash equivalents were 24623 million at the end of 2017 From Note 1 of the Notes to ...View the full answer
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
