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Question: Accounts Receivable Starbucks does not report accounts receivable as a separate line item on its balance sheet. This is because the company does not generally sell on credit terms. Instead, most customers pay for their purchases at the time of sale. As a result, Starbucks does not have a significant amount of accounts receivable outstanding. b. Allowance for Doubtful Accounts Starbucks also does not report an allowance for doubtful accounts on its balance sheet. This is because the company does not expect to have a significant amount of uncollectible accounts. Starbucks' credit card processing company is responsible for collecting payments from customers, and Starbucks only has to pay for the amount of coffee that is actually sold. c. Property, Plant, and Equipment (PPE) Starbucks' PPE has increased from 2021 to 2022 and has been increasing throughout the years due to Starbuck's global expansion into new markets and technological investments. In fiscal 2022, Starbucks' PPE increased by 22% to $7.2 billion. Accumulated depreciation has also been increasing, but at a slower rate than PPE. This is because Starbucks has a long-term asset life for its PPE. As a result, Net PPE has been increasing steadily, reaching $4.2 billion in fiscal 2022.
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