Using a Stabuck's latest annual 10K report (found on the SEC EDGAR website(*it doesn't let me post the URL to this site) Answer the following questions:

a) What are the most significant differences between net income and cash flow from operations?

b) Why do these differences occur?

c) Does the income statement tell us a story that is consistent or different from the statement of cash flows for this company?

d) Explain how the companys approach to revenue recognition affects accrual earnings and cash flows from operations.

Consolidated Balance Sheets - USD (5) Sep 30, 2018 Oct. 01, 2017 $ in Millions Current assets: Cash and cash equivalents S 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 Expense and Other Assets, 358.1 Current 1,462.8 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 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 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, Noncurrent 6,775.7 Deferred Tax and Other Liabilities, 1,430.5 Noncurrent 750.9 Total liabilities 22.980.6 8,908.6 Shareholders' equity: Common stock (S0.001 par value) - authorized, 2,400.0 shares, issued and 1.3 1.4 outstanding, 1,460.5 and 1,485.1 shares, respectively Additional paid-in capital 41.1 41.1 Retained earnings 1,457.4 5,563.2 Accumulated other comprehensive (330.3) (155.6) income/loss) 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 0.0 4.4 12 Months Ended Oct. 01, 2017 Sep. 30, 2018 Oct. 02, 2016 $ 4518,000,000 $2,884,900,000 $2,818,900,000 1.305.900.000 714,900.000 (242.800.000) 226.800.000 499.200.000 (1.376.400,000) 250.300.000 37.600.000 (89.000.000) 1,087,100,000 95.100.000 (310.200,000) 186,600,000 93,500,000 1,030,100,000 285,700,000 (250,200,000) 223,300,000 8,100,000 0 218,100,000 (45,100,000) 176,000,000 87.200.000 (68.900,000) 131,000,000 (41.200.000) 391,600,000 7,109,400,000 (677.100,000) 11,937.800.000 (93,800,000) 14.000.000 46,400.000 130,800,000 (4.700,000) 4,251,800,000 (55,600,000) (67.500,000) 40.000.000 180.400,000 248,800,000 4,697,000,000 Consolidated Statements of Cash Flows - USD ($) OPERATING ACTIVITIES: Net earnings including noncontrolling interests Adjustments to reconcile net eamings to net cash provided by operating activities: Depreciation and amortization Deferred income taxes, net Income (Loss) from Equity Method Investments Distributions received from equity method investees Deconsolidation, Gain (Loss). Amount Gain resulting from acquisition of joint venture Stock-based compensation Goodwill Impairment Loss Other Cash provided/(used) by changes in operating assets and liabilities: Accounts receivable Inventories Accounts payable Stored value card liability Other operating assets and liabilities Net Cash Provided by (Used in) Operating Activities INVESTING ACTIVITIES: Purchases of investments Proceeds from Sale and Maturity of Debt Securities, Available-for-sale Sales of investments Maturities and calls of investments Acquisitions, net of cash acquired Additions to property, plant and equipment Net proceeds from sale of equity in joint ventures and certain retail operations Other Net cash used by investing activities FINANCING ACTIVITIES: Proceeds from issuance of long-term debt Repayments of long-term debt Proceeds from issuance of common stock Cash dividends paid Repurchase of common stock Minimum tax withholdings on share-based awards Other Net cash used by financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of period End of period Cash paid during the period for: Interest, net of capitalized interest Income taxes, net of refunds (674.400,000) 1,054,500,000 999.700.000 149,600,000 (1.585,700,000) 880,700,000 680.700,000 27.000.000 (191,000,000) 459.000.000 459.000.000 45.300.000 (1.311.300.000) (1.976.400,000) 608.200,000 5.800.000 (2.381.500.000 (1.519.400.000) 85,400,000 54,300,000 (850.000.000) (1.440,300,000) 69,600,000 24.900,000 (2.222.900.000 5,584,100,000 1.254,500,000 0 153.900.000 (1.743.400.000) (7.133.500,000) (62.700.000) (41.200.000) (3.242.800.000 (39.500.000) 6.294.000.000 750.200.000 (400,000,000) 150.800.000 (1.450.400.000) 2.042.500.000) (82.800,000) (4.400,000) (3.079.100.000) 10.800.000 333.500.000 160.700.000 (1,178,000,000) (1.995,600,000) (108,000,000) (8.400.000) (1.872.800.000) (3.500,000) 598,700,000 2.462.300.000 8.750.300.000 2.128.800,000 2.462.300,000 1,530,100,000 2.128,800,000 137.100.000 $ 1.176.900.000 98.000.000 $ 1.389.100.000 74,700,000 $ 878,700,000 12 Months Ended Sep. 30, 2018 Oct. 01, 2017 Oct. 02, 2016 S (499.2) S (93.5) $(6.1) 4,518.0 2,884.9 2.818.9 (174.7) 4,343.3 (472) 2,837.7 91.0 2,909.9 12 (0.3) 4,343.6 0.2 2,837.5 2,908.7 (7.0) (9.5) 3.5 1.9 29 (1.3) 24.4 (6.5) 53.2 (12.6) (109.6) 27.5 Consolidated Statements of Comprehensive Income - USD ($) $ in Millions Deconsolidation, Gain (Loss), Amount Net earnings including noncontrolling interests Other comprehensive income/loss), net of tax: Other comprehensive income/loss) Comprehensive income including noncontrolling interests Comprehensive income/loss) attributable to noncontrolling interests Comprehensive income attributable to Starbucks Available-for-sale Securities (Member) Other comprehensive income/loss), net of tax: Unrealized holding gains/(losses) on available-for-sale securities, before tax Unrealized holding gains/(losses) on available-for-sale securities, tax (expense) benefit Cash Flow Hedging (Member) Other comprehensive income/loss), net of tax: Unrealized gains/(losses) on hedging instruments, before tax Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit Net Investment Hedges (Member) Other comprehensive income (loss), net of tax: Unrealized gains/(losses) on hedging instruments, before tax Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit Translation Adjustment (Member) Other comprehensive income/loss), net of tax: Translation adjustment and other, before tax Translation adjustment and other, tax (expense benefit Other comprehensive income/loss) Reclassification out of Accumulated Other Comprehensive Income (Member) Other comprehensive income (loss), net of tax: Reclassification adjustment for net gains (losses) realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment, before tax Reclassification adjustment for net gains (losses) realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment, tax expense/(benefit) 7.8 (22) 20.1 (7.4) 0.0 0.0 (220.0) 3.4 R (1997) (38.3) (24) (41.3) 85.5 19.0 104.5 24.7 (672) 78.2 S (1.2) S14.0 S (11.8)