1- Does Starbucks Corp. report an allowance for doubtful accounts in the balance sheet? If not,...
1- Does Starbucks Corp. report an allowance for doubtful accounts in the balance sheet? If not, please search for “allowance for doubtful accounts” in the “NOTES TO CONSOLIDATED FINANCIAL STATEMENTS” and find out how much it is reported for 2018.
2- (1) Which depreciation method is used by Starbucks Corp.?
(2) What are the estimated useful lives (e.g., in years) for equipment, buildings, and leasehold improvements, respectively?
(3) What is the net book value of Property, Plant and Equipment for 2018?
(4) What is the trend in Property, Plant and Equipment in the past two years (increase or decrease from 2017 to 2018)?
(Hint: You may search for “Property, Plant and Equipment” in “Note 1: Summary of Significant Accounting Policies” and “CONSOLIDATED BALANCE SHEETS.”)
3- What was the most interesting thing you read in this annual report?
link for the report
https://s22.q4cdn.com/869488222/files/doc_financials/annual/2018/2018-Annual-Report.pdf
Homework Answers
1- As of September 30, 2018 Starbucks Corp. reported allowance for doubtful accounts worth $8.0 million. This information was available under notes to accounts Receivables, net of Allowance for Doubtful Accounts
2- Depreciation is computed using the straight-line method by Starbucks Corp. This information can be found on notes to accounts Property, Plant and Equipment
3- The estimated useful life for equipment ranges from 2 to 15 years, 30 to 40 years for buildings. Leasehold improvements - generally 10 years. This information can be found on notes to accounts Property, Plant and Equipment
4- Net book value of Property, Plant and Equipment for 2018 is $5929.1 million. This information can be found on Consolidated Balance Sheet
5- Property, Plant and Equipment in increased from $4919.5 million in 2017 to $5929.1 million in 2018.
6- The most interesting thing in the annual report was a dramatic increase in total assets and total liabilities in 2018 over 2017 while the equity went down sharply from 2017 to 2018.
Please comment in case of any issue and I will be happy to help.
Add Answer to:
1- Does Starbucks Corp. report an allowance for doubtful
accounts in the balance sheet? If not,...
Obtain from the internet or from the link below the 2017 and 2018 annual reports for Starbucks. Use the information in t...
Obtain from the internet or from the link below the 2017 and 2018 annual reports for Starbucks. Use the information in the financial statements to respond to the following questions: 1. Ratio Analysis: Compute the following ratios for 2017 and 2018 for Starbucks? a. Current Ratio b. Quick Ratio c. Accounts Receivable Turnover Ratio d. Inventory Turnover Ratio e. Debt-to-Equity Ratio f. Return on Equity g. Return on Assets h. Quality of Net Income (Cash Flows from Operating Activities/Net Income)...
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Assume the following information for Skysong Corp. $151,000 Accounts receivable (beginning balance) Allowance for doubtful accounts...
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Assume the following information for Marin Corp. Accounts receivable (beginning balance) $135,000 Allowance for doubtful accounts...
Assume the following information for Marin Corp.
Accounts receivable (beginning balance)
$135,000
Allowance for doubtful accounts (beginning balance)
11,390
Net credit sales
940,000
Collections
902,000
Write-offs of accounts receivable
5,900
Collections of accounts previously written off
2,200
Uncollectible accounts are expected to be 6% of the ending balance
in accounts receivable.
Prepare the entries to record sales and collections during the
period. (Credit account titles are automatically
indented when the amount is entered. Do not indent
manually.)
Account Titles and...
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Allowance for doubtful accounts (beginning balance)
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Collections
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period. (Credit account titles are automatically
indented when the amount is entered. Do not indent
manually.)
Account Titles and...
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