Using the most current annual reports or the Forms 10-K for Starbucks, the world
ID: 2568571 • Letter: U
Question
Using the most current annual reports or the Forms 10-K for Starbucks, the world's largest cofee houses, and Whirlpool, which manufactures appliances, complete the following requirements. To obtain the Forms 10-K, use either the EDGAR system following the instructions in Appendix A or the companies' websites. The annual reports can be found on the companies' websites. Required a For each company, compute accounts receivable as a percentage of revenue. Show your computations. b. Which company appears to be making more of its sales on account? Explain your answer c. Try to provide a logical explanation as to why one of these companies is making more of its sales er.Explanation / Answer
Answer for question no.a:
Answer for question no.b:
Star bucks appear to be making more of its sales on account. Its receivables to sales % is 3.75% which is higher than that of whirlpool which is 3.57% lower than that of starbucks.
Answer for question no.c:
Starbucks does business not only through its company owned stores but also through licensed stores. Because of these licensed stores and its business from food service business, its accounts receivables is more.
Particulars Starbucks Whirlpool Receivables 719 746 Total net revenues 19162.7 20891 Receivables as a percentage of revenue 3.75% 3.57%Related Questions
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