Reference no: EM132545624

The recent balance sheet for Starbucks shows $24 billion in assets, $23 billion in liabilities, and $1 billion in Owners' Equity. (Another way to state it is $24,000,000,000 in assets, $23,000,000,000 in liabilities, and $1,000,000,000 in Owners' Equity.) Their recent income statement shows $25 billion in revenue, $20 billion in expenses, and $5 billion in net income. Please number your answers as you address each of the following requirements.

Question 1: Does the company's balance sheet balance according to the fundamental accounting equation? Support your answer by using the dollar amounts above.

Question 2: Describe at least two examples of an asset and two examples of a liability that Starbucks might show on its balance sheet. Please go beyond simply stating the name of the account by also describing what the account represents (for example, "furniture" is an asset account and represents the cost of furniture used in the business such as tables and chairs at Starbucks).

Question 3: Using the information provided above, describe how Starbucks calculated net income on the income statement, and show dollar amounts to support your answer.

Question 4: Describe at least two examples of products that Starbucks might sell to earn revenue, and two expenses Starbucks might incur.