Use Starbucks Corporation's Fiscal 2013 Annual Report and the Note 1 data on Allowance for Doubtful Accounts

Question:

Use Starbucks Corporation's Fiscal 2013 Annual Report and the Note 1 data on "Allowance for Doubtful Accounts" to answer the following questions. Visit www.pearsonhighered.com/Horngren to view a link to Starbucks Corporation's annual report.

Requirements

1. How much accounts receivables did Starbucks report as of September 29, 2013? As of September 30, 2012?

2. Refer to Note 1, "Allowance for Doubtful Accounts." How does Starbucks calculate allowance for doubtful accounts? What was the amount of the account as of September 29, 2013? As of September 30, 2012?

3. Compute Starbucks's acid-test ratio at the end of 2013. If all the current liabilities came due immediately, could Starbucks pay them?

4. Compute Starbucks's accounts receivable turnover at the end of 2013. Use total net revenues.

5. Compute Starbucks's days' sales in receivables at the end of 2013.

6. How does Starbucks compare to Green Mountain Coffee Roasters, Inc. on the basis of the acid-test ratio, accounts receivable turnover, and days' sales in receivables?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...