3 - Accounts Receivable Balance Sheet Presentation 10 Points . Using Starbucks Balance Sheet and Notes on the next two pages, complete the following schedule Starbucks > 2018 2017 A/R, Gross ave, Grosse T Allowance A/R, Net Sep , DIN OI 2017 Sument pas longivalen 181.5 228.6 8909 870.4 1,400.5 1,364.0 I 12,494.2 5,283.4 ME 334.7 481.6 134.7 795.4 1,0422 441.4 2 3.16 24,156.4 S 14,365.6 Current assets: Cash and cash equivalent Short-term investments Acoblints tecepible, het Inventories Prepaid exponses and other curre Total current assets S Long-term investments Equity and cost investments Property, plant and equipment, niet Deferred income taxes, net Other long-term assets Other intangible assets Gondial TOTAL ASSETS EQUITY Current liabilities: Accounts payable Accrued liabilities Insurance reserves Stored value card liability and current portion of deferred reven per portion of long-term debit Total current liabilities Long term de Deferred revenue Other long-terebilities Total liabilities S Shareholders equity Common stock (50.001 par value) authorized, 2,400.0 shares, issued and outstanding, 1,309.1 and 1,431 6 shares, respectively A l pid-le capital Retained earings ecumalated other comprehensive los Total shareholders' equity Nontrolling interest Total equity TOTAL LIABILITIES AND EQUITY 35 EZE yable 7793 2,298.4 1.9345 1,288.5 1.642.9 2499 5,684.2 3 4.220.7 23 3.9326 44 6,775.7 OS 22,980.6 7529 8.908.6 1.3 1.4 1.457.4 5,563.2 01556) 1.169.5 5.450.1 1,175.8 24:15 5,457.0 11656 earnings when the hedged net investment is either sold or substantially liquidated. To the extent that the change in the fair value of the forward contract corresponds to the change in value of the anticipated transactions using spot rates on a monthly basis, the hedge is considered effective and is recognized as described above. The remaining change in fair value of the forward contract represents the ineffective portion, which is immediately recognized in interest income and other, net on our consolidated statements of earnings. Fair Value Hedges For derivative instruments that are designated and qualify as a fair value hedge, the changes in fair value of the derivative instruments and the offsetting changes in fair values of the underlying hedged item are recorded in interest income and other, net or interest expense on our consolidated statements of carings. Derivatives Nor Designated As Hedging Instruments We also enter into certain foreign currency forward contracts, commodity futures contracts, collars and swaps that are not designated as hedging instruments for accounting purposes. The change in the fair value of these contracts is immediately recognized in interest income and other, net on our consolidated statements of carings. Normal Purchase Normal Sale We enter into fixed price and price-to-be-fixed green coffee purchase commitments, which are described further at Note 5, Inventories. For both fixed-price and price-to-be-fixed purchase commitments, we expect to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on our balance sheets Refer to Note 3, Derivative Financial Instruments, and Note 5. Inventories, for further discussion of our derivative instruments and green coffee purchase commitments Receivables, net of Allowance for Doubtful Accounts Our receivables are mainly comprised of receivables for product and equipment sales to and royalties from our licensees, as well as receivables from our CPG customers. Our allowance for doubtful accounts is calculated based on historical experience, customer credit risk and application of the specific identification method. As of September 30, 2018 and October 1, 2017. our allowance for doubtful accounts was $8.0 million and $9.8 million, respectively Inventories Inventories are stated at the lower of cost (primarily moving average cost) or net realizable value. We record inventory reserves for obsolete and slow-moving inventory and for estimated shrinkage between physical inventory counts. Inventory reserves are based on inventory obsolescence trends, historical experience and application of the specific identification method. As of September 30, 2018 and October 1, 2017, inventory reserves were $415 million and $38.4 million, respectively Property, Plant and Equipment Property, plant and equipment, which includes assets under capital leases, are carried at cost less accumulated depreciation Cost includes all direct costs necessary to acquire and prepare assets for use, including internal labor and overhead in some cases. Depreciation is computed using the straight-line method over estimated useful lives of the assets, generally ranging from 2 to 15 years for equipment and 30 to 40 years for buildings. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life, generally 10 years. For leases with renewal periods at our option, we generally use the original lease term, excluding renewal option periods, to determine estimated useful lives. If failure to exercise a renewal option imposes an economic penalty to us, we may determine at the inception of the lease that renewal is reasonably assured and include the renewal option period in the determination of the appropriate estimated useful lives MacBook Pro