Question

Required information [The following information applies to the questions displayed below.] Starbucks is a coffee company-a big coffee company. During a 10-year period, the number of Starbucks loca China grew from 24 to over 1,000. The following is adapted from Starbucks's annual report for the year ended 2016, and dollars are reported in millions. $4,240 565 Accounts Payable Accounts Receivable Cash Common Stock Equipment Intangible Assets Inventory Notes Payable (long-term) Notes Payable (short- term) Prepaid Rent Retained Earnings Short-Term Investments 2,610 360 3,340 2,900 1,160 1,710 1,320 575 4,190 670 Assume that the following events occurred in the following quarter, which ended December 31, 2016. Dollars millions.

Answer 1

1

. $Current Ratio = \frac{Current Assets}{Current Liabilities}$

$Current Ratio = \frac{\$9,720}{\$4,750}$

Note: Data is given below in Balance Sheet

2.

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Note: Transaction e is under negotation and that is not a valid transaction to record in books therefore not recorded.

3.

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Working Note:

Balance Sheet Assets Current Assets Cash Accounts Receivable Inventory Short-term Investments Prepaid Rent Non-Current Assets Equipment Intengible Assets Total Assets $6,750 $565 $1,160 $670 $575 $9,720 $16,440 $3,950 $20,390 $30,110 Liabilities Current Liabilities Accounts Payable Notes Payable (short-term) Non-Current Liabilities Notes Payable (Long-term) Total Liabilities $3,430 $1,320 $4,750 $10,710 $10,710 $15,460 Stockholder's Equity Common Stock $10,460 Retained Earnings $4,190 Total Stockholder's Equity Total Liabilities and Stockholder's Equity $14,650 $30,110

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