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Concept explainers
Use Starbucks Corporation’s Fiscal 2013 Annual Report and the Note 1 data on “Allowance for Doubtful Accounts” to answer the following questions. Visit http://www.pearsonhighered.com/Homgren 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
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 add-test ratio, accounts receivable turnover, and days’ sales in receivables?
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Chapter 8 Solutions
Horngren's Financial & Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
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