Hi! I need some help with my Case 9.1 Starbucks homework. Please answer questions a-b in a Word doc. I attached the instructions. Thank you!

INTEGRATIVE CASE 9.1 Starbucks IIEQUIIIED Stirhdrsgeritesreveruesin mirydi'ferertvlayshaidimtc-wning "Emmi! licenses. o'ler compal'es to sel Stalhudrs brewed and gmund ca'ees, Ellis, and a'ler pl'IIllJlii a. For each of the following mums, describe law Starbucks should recognize revenue and the working mpital accounts that smutl likely be created by le revenue remgnitinn approadl {For Items 1-5. ignore ales lax] [III Cash customer pullasing coffee at a Sta'hmcb-om'red reil store [2} Customer add'ng cash balance to her SEI'hucks card [3} Customer at Smrbudsormtd rela'l store paying for ooffee wilh a Slarbucks card [-III Oler businesses 'rat purchase Stabudrs' products on u'edit [5:1 Licensed stores [ Customer rem'tng sales taxes In- Shrbucks when purdlasing coffee b. Starhscks'yddkverumnaspurdaseunfmemdmmceheaee 161k up of coffee. How should Starbucks account far dis cushorner onty program? [Assumethit'reseling pceforacupnfmee is 5mm thatlhe Iirectinwsrtnry cost per cup is 51.5111:I 1 Revenue recognition Name Institution Date 2 Revenue recognition is a bookkeeping rule, which alludes to how income is dealt with or perceived and is one of the four primary standards in the US Generally Accepted Accounting Principles (GAAP)[Joa15]. There is a loyalty program in Starbucks called My Starbucks Rewards. In every purchase made, a client earns loyalty points which are redeemable or a prize could be worn out of the accumulated stars. At the point when a client recovers an earned prize, Starbucks perceives income for the reclaimed item and decrease the related devotion program liability. Royalty incomes based upon a rate of reported deals, and other proceeding with expenses, for example, advertising and administration charges, are perceived on a month to month premise when earned. Starbucks-owned retail store incomes are perceived when installment is made at an offer point. The store incomes are accounted for net of offers, use or other exchange imposes that are gathered from clients and transmitted to taxing authorities. Stored value cards, essentially Starbucks Cards, can be stacked at Starbucks organization worked and most authorized store areas and online at StarbucksStore.com or by means of cell phones held by clients, and at certain other outsider areas. At the point when a sum is stacked onto a stored value cards at any of these areas, Starbucks perceives a corresponding obligation for amount stacked onto the card, which is recorded in the stored value cards risk on combined asset reports such as balance sheet. Incomes from offers of items to producers that create and market Starbucks, Seattle's Best Coffee and Tazo-marked items through permitting agreements are for the most part perceived when the item is received by the producer or wholesaler. Permit charge revenues from producers depend on a rate of offers and are perceived on a month to month premise when earned. National foodservice account incomes are perceived, when the item is received by the client or merchant. 3 Question b Price per cup =$2.20 Inventory =$1.50 Hence ,total income for 15 cups 2.20*15= $33 Inventory for 16th cu of coffee 1.50*16 =$24 So total profit of selling cup of coffee 33-24 =$9 So the company report $9 operating profit from selling 16 th cup of coffee.there was cash increment by $33 and decrease in inventory by $24 and remaining $9 as retained on liability side 4 References Flood, J. M. (2015). Wiley GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles. New Jersey: Wiley. 3. Customer at S corporation owned retail store paying for coffee through S corporation card In this transaction accrued liability is decreases on liability side under current liability and by the same amount inventory of the company is decreases on the assets side under current assets. 4. Other business that purchase S corporation product on credit In this case inventory of the company is decreases under current assets on assets side and by the same amount account receivable are increases under current assets on assets side. For this transaction there is no treatment on liability side. 5. Licensed store For this transaction cash in increase on under cun'ent assets on assets side and since it is a capital gain so retained eamings will increases by the same amount on liability side.. 6. Customer remitting sales taxes to S corporation when purchasing coffee. Forthis transaction cash is increases under current assets on assets side and on the liability side tax liability will increases by the same amount S corporation is a coffee shop retail company. Company is a USA based company operated in most ofthe countries in all overthe globe. S corporation generates revenue in many different ways in addition to its primary business of owning its own stores. S corporation gives license to other companies to sell 8 corporation's Brewed and ground coffee. tea and other product as franchise. a. In S corporation outlet different type of customers comes and they pay in different ways. Revenue recognition for Following and treatment of working capital account is mention below: 1. Cash customer purchasing coffee at an S corporation Owned stores A customer purchase coffee at an S corporation owned store so inventory of the company is decrease and cash of the company is increase. 2. Customer adding cash balance to her S corporation card Customer adding cash balance to her S corporation card so this payment by customers is an accrued income for S corporation so on liability side under current liability accrued income is increases and by same amount on assets side under current assets cash of the company is increase. Question b Price per cup =$2.20 Inventory =$1.50 Hence ,total income for 15 cups 2.20*15= $33 Inventory for 16th cu of coffee 1.50*16 =$24 So total profit of selling cup of coffee 33-24 =$9 So the company report $9 operating profit from selling 16 th cup of coffee.there was cash increment by $33 and decrease in inventory by $24 and remaining $9 as retained on liability side 3. Customer at S corporation owned retail store paying for coffee through S corporation card In this transaction accrued liability is decreases on liability side under current liability and by the same amount inventory of the company is decreases on the assets side under current assets. 4. Other business that purchase S corporation product on credit In this case inventory of the company is decreases under current assets on assets side and by the same amount account receivable are increases under current assets on assets side. For this transaction there is no treatment on liability side. 5. Licensed store For this transaction cash in increase on under cun'ent assets on assets side and since it is a capital gain so retained eamings will increases by the same amount on liability side.. 6. Customer remitting sales taxes to S corporation when purchasing coffee. Forthis transaction cash is increases under current assets on assets side and on the liability side tax liability will increases by the same amount S corporation is a coffee shop retail company. Company is a USA based company operated in most ofthe countries in all overthe globe. S corporation generates revenue in many different ways in addition to its primary business of owning its own stores. S corporation gives license to other companies to sell 8 corporation's Brewed and ground coffee. tea and other product as franchise. a. In S corporation outlet different type of customers comes and they pay in different ways. Revenue recognition for Following and treatment of working capital account is mention below: 1. Cash customer purchasing coffee at an S corporation Owned stores A customer purchase coffee at an S corporation owned store so inventory of the company is decrease and cash of the company is increase. 2. Customer adding cash balance to her S corporation card Customer adding cash balance to her S corporation card so this payment by customers is an accrued income for S corporation so on liability side under current liability accrued income is increases and by same amount on assets side under current assets cash of the company is increase. Question b Price per cup =$2.20 Inventory =$1.50 Hence ,total income for 15 cups 2.20*15= $33 Inventory for 16th cu of coffee 1.50*16 =$24 So total profit of selling cup of coffee 33-24 =$9 So the company report $9 operating profit from selling 16 th cup of coffee.there was cash increment by $33 and decrease in inventory by $24 and remaining $9 as retained on liability side