This case, based on the balance sheet of Starbucks Corporation, will familiarize you with some of the

Question:

This case, based on the balance sheet of Starbucks Corporation, will familiarize you with some of the assets and liabilities of that company. Visit www.pearsonhighered.com/Horngren to view a link to the Starbucks Corporation Fiscal 2011 Annual Report. Use the Starbucks Corporation balance sheet to answer the following questions.

Requirements

1. Which balance sheet format does Starbucks use?

2. Name the company’s largest current asset and largest current liability at October 2, 2011.

3. Compute Starbucks’ current ratios at October 2, 2011, and October 3, 2010. Did the current ratio improve, worsen, or hold steady?

4. Under what category does Starbucks report furniture, fixtures, and equipment?

5. What was the cost of the company’s fixed assets at October 2, 2011? What was the amount of accumulated depreciation? What was the book value of the fixed assets?

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...