Submit both a horizontal and vertical analysis of starbucks accounts receivable, fixed assets and debt financing
submit both a horizontal and vertical analysis of Starbucks’ accounts receivable, fixed assets, and debt financing.Access the most current annual report (10-K).
https://www.sec.gov/Archives/edgar/data/829224/000…
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper NowQUESTION Submit both a horizontal and vertical analysis of Starbucks’ accounts receivable, fixed assets, and debt financing. Please be sure that you access the most current annual report (10-K), LINK GIVEN ABOVE
also here is some helpful information.
Starbuck’s presents A/R net of allowance for doubtful accounts – which is the contra asset that reduces A/R to Net Realizable value. This is the reserve for bad debt which is an estimate to accrue for potential bad debt expense on the Income Statement.
A/R is discussed in Starbuck’s 10k in Note 1: Summary of Significant Accounting Policies Under the heading “Receivables, net of Allowance for Doubtful Accounts”. Since A/R is presented net of the allowance for doubtful, you will have to refer to the footnote disclosure regarding the amount. It states that the 2017 amount was $9.8 million and the 2016 amount was $9.4 million.
Net A/R for 2017 is $870.4M and 2016 is $768.8M. To get gross A/R (since it is presented net of allowance for doubtful) we will need to add bad the allowance for doubtful figure.
A/R 2017 = $880.2M gross + ($9.8M Allowance for doubtful) = $870.4M Net A/R
A/R 2015 = $729.8M gross + ($10.8M Allowance for doubtful) = $719.0M Net A/R
Remember that the allowance for doubtful reserve is an estimate of expected bad debt and non -collectible A/R. It has increased from 2017 to 2016. Revenues have also increased from 2017 to 2016!