Access the Internet to acquire a copy of the most recent annual report for the publicly traded company used to complete the Financial Reporting Problem, Part 1 assignment due in Week Six.
Analyze the information contained in the company’s balance sheet and income statement to answer the following questions:
•Are the assets included under the company’s current assets listed in the proper order? Explain your answer.
The current assets should be listed in the order of liquidity. The assets which can be easily converted into cash are listed first. Cash is already in liquid form and thus is recorded first. Next to follow are cash and cash equivalents (like marketable securities etc.) which can be very easily converted into cash are recorded next. The other current assets to follow the list are Accounts receivable, Inventory, Prepaid expenses and other current Assets. Starbucks is following the same while listing the current assets in the Balance Sheet.
•How are the company’s assets classified?
Assets are classified as Current Assets and Fixed Assets. Current Assets are those assets out of which the benefit derived is for a period less than one year. Fixed assets are those assets out of which the benefit derived is for a period more than 1 year.
•What are cash equivalents?
Cash equivalents are investment securities that are short-term, have high credit quality and are highly liquid.
Cash and Cash equivalents of Starbucks as of 2013-09-29 is $2,575.70 million.
•What are the company’s total current liabilities at the end of its most recent annual reporting period?
The total Current liabilities of Starbucks as of 2013-09-29 are $5,577.30 million.
•What are the company’s total current liabilities at the end of the previous annual reporting period?
The total Current liabilities of Starbucks as at the end of the previous annual reporting period 2012-09-30 is $2,209.80 million.
•Considering all the information you have