We will also look into their methods of accounting

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Fiscal years ending on September 28, 2014 and September 30, 2015. We will also look into their methods of accounting for receivables and evaluate their uncollectible receivables. One method that is used to gauge the accounting method for Starbucks is the Day Sales method in evaluating accounts receivables. The Day Sales method measures the average number of days it takes for a company to collect revenue. Accounts receivables is measured by outstanding day sales. The day sales method measures the number of days it takes to collect a receivable. The Day Sales method is known as a ratio because the calculations are determined by the number of days in a year divided by the accounts receivable turnover ratio in a given year and is based on credit sales in a given year (Averkamp). In 2015, As Averkamp notes the best indication to measure accounts receivables is an Aging Report. The most widely used accounting method that Starbucks uses is aggregate accrual. “Using the balance-sheet-based accruals ratio, Starbucks Corp. improved earnings quality from 2014 to 2015” (Stock Analysis on Net, 2016). Starbucks is one of the largest coffee retailers in the United States and expanding significantly in new markets around the world. From 2014-2015, Starbucks has seen significant growth in both mature and new markets providing exceptionally strong performance over its competitors such as Dunkin’ Brands, Panera Bread, and other leading coffee and breakfast retailers.
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  • Fall '14
  • Balance Sheet, Generally Accepted Accounting Principles, Starbucks Corporation

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