Who owes the company money? It is possible that Starbucks does not report accounts receivable as a
Question:
Who owes the company money? It is possible that Starbucks does not report accounts receivable as a separate line item because they do not generally sell on credit terms.
Use the SEC 10-K for Starbucks.
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000829224/000082922422000058/sbux-20221002.htm
Notice line items, if they appear, for Right of Use Assets and Lease Liabilities as well as other changes in Property, Plant and Equipment (PPE) and Liabilities. Long Term Debt often funds the purchase of new fixed assets.
a. Reading the notes to the financial statements, as well as the balance sheet, post information about the Accounts Receivable for Starbucks.
b. Search for the phrase "Bad Debts" or Allowance (for collectible accounts). When you read the balance sheet, you may see that the receivables are listed as a net of $X,XXX to show the Allowance for Bad Debts.
Comment about the changes in Accounts Receivable and the Allowance for Bad Debts.
Are they increasing or decreasing? How does this relate to sales (are sales increasing or decreasing)?
c. Property, Plants, and Equipment / PPE (Capital Assets; Fixed Assets):
Comment about PPE and accumulated depreciation.
How are these values changing from year to year: PPE, Accumulated Depreciation, and Net PPE?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill