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 What did Starbucks report as total liabilities on October 2, 2016? Select one: A. $12,516.7 million B. $6,377.3 million C. $995.0 million D. $8,438.8 million E. None of the above

Answer 1

Answer:

D. $8,438.8 million

Explanation:

Having equity and assets with the accounting equation we can solve for the amount of liabilities:

        Assets               =         Equity      +         Liability

     14,329.5                =      5,890.7      +        Liabilities

    14,329.5 - 5,890.7 =      Liaiblities

        8438.8              =        Liabilities

The current laibilities is part of the total liabilities, we should ignore that data.