Q. Obtain the financial statements of a company with which you are familiar. The Annual report or 10K report of a publicly-traded company would be a great resource for this problem. ( Starbucks)

Required. 1. Identify specific account balances for which substantive analytical procedures would be appropriate and discuss your reasoning for selecting these accounts. 2. Describe in detail the type of substantive analytical procedures that would be used for these account balances and why this would be an effective test of the account balances.

Sep 30, 2018					Oct 1, 2017
ASSETS
Current assets:
Cash and cash equivalents		$	8,756.3				$	2,462.3
Short-term investments		181.5					228.6
Accounts receivable, net		693.1					870.4
Inventories		1,400.5					1,364.0
Prepaid expenses and other current assets		1,462.8					358.1
Total current assets		12,494.2					5,283.4
Long-term investments		267.7					542.3
Equity and cost investments		334.7					481.6
Property, plant and equipment, net		5,929.1					4,919.5
Deferred income taxes, net		134.7					795.4
Other long-term assets		412.2					362.8
Other intangible assets		1,042.2					441.4
Goodwill		3,541.6					1,539.2
TOTAL ASSETS		$	24,156.4				$	14,365.6

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	1,179.3				$	782.5
Accrued liabilities		2,298.4					1,934.5
Insurance reserves		213.7					215.2
Stored value card liability and current portion of deferred revenue		1,642.9					1,288.5
Current portion of long-term debt		349.9
Total current liabilities		5,684.2					4,220.7
Long-term debt		9,090.2					3,932.6
Deferred revenue		6,775.7					4.4
Other long-term liabilities		1,430.5					750.9
Total liabilities		22,980.6					8,908.6
Shareholders equity:
Common stock ($0.001 par value) authorized, 2,400.0 shares; issued and outstanding, 1,309.1 and 1,431.6 shares, respectively		1.3					1.4
Additional paid-in capital		41.1					41.1
Retained earnings		1,457.4					5,563.2
Accumulated other comprehensive loss		(330.3		)			(155.6		)
Total shareholders equity		1,169.5					5,450.1
Noncontrolling interests		6.3					6.9
Total equity		1,175.8					5,457.0
TOTAL LIABILITIES AND EQUITY		$	24,156.4				$	14,365.6