Find Starbucks’ 2011 financial statements either through the SEC EDGAR database or on Starbucks’ Web site.
1. Starbucks combines cash and cash equivalents on the balance sheet. Examine the first foot-note to the financial statement and determine how Starbucks defines cash equivalents.
2. The first line of Starbucks’ income statement is “Net revenues.” From the Revenue Recognition section of footnote 1 to the financial statements, determine what items are deducted from gross revenue to yield net revenue.
3. Calculate the days to collect accounts receivable for the year ended October 2, 2011, assuming all sales were on account.