BALANCE SHEET AND COMPANY

APR 11, 2019, 503 WORDS  

STARBUCKS

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?