This case, based on the balance sheet of Starbucks Corporation, will familiarize you with some of the assets and liabilities of that company. Visit http://www.pearsonhighered.com/Horngren to view a link to the Starbucks Corporation Fiscal 2013 Annual Report. Use the Starbucks Corporation balance sheet to answer the following questions.
1. Which balance sheet format does Starbucks use?
2. Name the company’s largest current asset and largest current liability at September 29, 2013.
3. Compute Starbucks’s current ratios at September 29, 2013, and September 30, 2012. Did the current ratio improve, worsen, or hold steady?
4. Under what category does Starbucks report furniture, fixtures, and equipment?
5. What was the cost of the company’s fixed assets at September 29, 2013? What was the amount of accumulated depreciation? What was the book value of the fixed assets? See Note 7 for the data.