Question

On October 2, 2016 Starbucks Corporation reported, on its Form 10-K, the following (in millions):

Total assets $14,329.5
Total stockholders' equity 5,890.7
Total current liabilities 4,546.9
1. What did Starbucks report as total liabilities on October 2, 2016?

Answer 1

The total liabilities of the Starbucks on October 2, 2016 will be $12,985.7

Step-by-step explanation:

The total liabilities will be computed using the accounting equation, which is as:

Accounting Equation

Assets = Liabilities + Shareholders Equity

Assets = (Current liabilities + Long term liabilities) + Shareholders Equity

Putting the values here in the accounting equation:

$14,329.5 = Liabilities + $5,890.7

Liabilities = $14,329.5 - $5,890.7

= $8,438.8

So, the total liabilities will be:

Total liabilities = Liabilities (long term) + Current liabilities

= $8,438.8 + $4,546.9

= $12,985.7