Take a look at the balance sheet for Starbucks. On it, retained earnings are about $2.2 billion.

Question:

Take a look at the for Starbucks. On it, retained earnings are about $2.2 billion. How do you interpret this amount? Does it mean that Starbucks has $2.2 billion in cash available to spend?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...