Financial Statement
Student’s Name
Affiliation
Course
Date
The Financial Statement below is Apples Inc for the year ended 28th September 2013
APPLE INC.
Financial Statement for the year ended 28/09/2013
In Millions of USD (except for per share items) As of 2013-09-28 As of 2012-09-29 As of 2011-09-24 As of 2010-09-25
Cash & Equivalents 14,259.00 10,746.00 9,815.00 11,261.00
Short Term Investments 26,287.00 18,383.00 16,137.00 14,359.00
Cash and Short Term Investments 40,546.00 29,129.00 25,952.00 25,620.00
Accounts Receivable – Trade, Net 13,102.00 10,930.00 5,369.00 5,510.00
Receivables – Other – – – –
Total Receivables, Net 20,641.00 18,692.00 11,717.00 9,924.00
Total Inventory 1,764.00 791.00 776.00 1,051.00
Prepaid Expenses – – – –
Other Current Assets, Total 10,335.00 9,041.00 6,543.00 5,083.00
Total Current Assets 73,286.00 57,653.00 44,988.00 41,678.00
Property/Plant/Equipment, Total – Gross 28,519.00 21,887.00 11,768.00 7,234.00
Accumulated Depreciation, Total -11,922.00 -6,435.00 -3,991.00 -2,466.00
Goodwill, Net 1,577.00 1,135.00 896.00 741.00
Intangibles, Net 4,179.00 4,224.00 3,536.00 342.00
Long Term Investments 106,215.00 92,122.00 55,618.00 25,391.00
Other Long Term Assets, Total 5,146.00 5,478.00 3,556.00 2,263.00
Total Assets 207,000.00 176,064.00 116,371.00 75,183.00
Accounts Payable 22,367.00 21,175.00 14,632.00 12,015.00
Accrued Expenses 4,782.00 3,283.00 2,428.00 1,593.00
Notes Payable/Short Term Debt 0.00 0.00 0.00 0.00
Current Port. of LT Debt/Capital Leases – – – –
Other Current liabilities, Total 16,509.00 14,084.00 10,910.00 7,114.00
Total Current Liabilities 43,658.00 38,542.00 27,970.00 20,722.00
Long Term Debt 16,960.00 – – –
Capital Lease Obligations – – – –
Total Long Term Debt 16,960.00 0.00 0.00 0.00
Total Debt 16,960.00 0.00 0.00 0.00
Deferred Income Tax 16,489.00 13,847.00 8,159.00 4,300.00
Minority Interest – – – –
Other Liabilities, Total 6,344.00 5,465.00 3,627.00 2,370.00
Total Liabilities 83,451.00 57,854.00 39,756.00 27,392.00
Redeemable Preferred Stock, Total – – – –
Preferred Stock – Non Redeemable, Net – – – –
Common Stock, Total 19,764.00 16,422.00 13,331.00 10,668.00
Additional Paid-In Capital – – – –
Retained Earnings (Accumulated Deficit) 104,256.00 101,289.00 62,841.00 37,169.00
Treasury Stock – Common – – – –
Other Equity, Total -105.00 8.00 23.00 35.00
Total Equity 123,549.00 118,210.00 76,615.00 47,791.00
Total Liabilities & Shareholders’ Equity 207,000.00 176,064.00 116,371.00 75,183.00
Shares Outs – Common Stock Primary Issue – – – –
Total Common Shares Outstanding 899.21 939.21 929.28 915.97
The assets are listed in order of liquidity, most liquid current assets appear first, Current asset appear first such as the cash, bank balances and short term investments, receivables, inventories. Current assets are expected to be converted to cash or use within an operating period. Inventories and accounts receivables appear at the bottom of current assets as noted in the Apple Inc financial statement. Long term assets are then presented categorized as Property which includes plant property and equipment this are physical used in the course of operations. An intangible asset is intellectual property, the company then I identify other current assets which might include a prepaid expense.
The classifications of assets are defined in terms of property and possessions of the business they include: Fixed assets not acquired for sale but for business purposes they include, property, plant and machinery. They can also be classified as wasting Assets as they are prone to wear and tear. : Circulating Assets are assets that are held for sale such as bills receivable although not defined in the report stated above: Intangible assets have no physical existence and do not represent anything valuable: Contingent assets like uncalled capital in which they happen after an event and then Outstanding Assets which are expenses paid in advance but are not received by the limited company in a fiscal year (Eisen, 2007).
Cash and cash equivalent is an asset that are highly liquid can only be converted into cash example saving accounts, bonds, money market, and treasury Bills. They appear on a financial statement of an organization and include cash in bank and cash in hand accounts. Cash is generated from the sale proceeds of products and services, borrowing from financial institutions and creditors and from capital contribution from owners or shareholders. They do not deteriorate in value until maturity.
Current liabilities are the debts that a company owes and are payable within a fiscal year. Examples of current liabilities include Loans, consumer deposits; Federal taxes, account payables, interest payable and reserves. In Apples Financial statements they are mentioned below
Total Current liabilities (For the period ending 09/28/13)
= Accrued Expenses + Accounts payable/creditors + Notes Payable+ Current port. Of LT Debt + leases +Other Current Liabilities
(All numbers in millions of US Dollars$ (‘000,000,000))
4,782+22,367+16,509= 43,658
Total Current liabilities (For the period ending 09/29/13)
=Accrued Expenses + Accounts payable/creditors + Notes Payable+ Current port. Of LT Debt + leases +Other Current Liabilities
(All numbers in millions of US Dollars$ (‘000,000,000))
3,283+21,175+14,084= 38,542
Current liabilities are essential to enable an investor, creditors and employees know how much a company owes in the short term. It assists investors to make decisions on lending company money or other resources. The current ratio or quick ratio usually determine whether a company can pay off its current liabilities. Financial ratios are used to understand how the company is fairing in terms of debt. Current ratio shows amount of assets to liabilities and point to the ability to pay.
Most investors would invest in a company that has less debt within a financial year or progressed in paying off debt in a financial period. Investors would compare amount of short term debt to cash position within current asset to compare financial standing of the company. Paying debts requires one to change some assets to cash, this will help you compare how much current asset you have and lets you know how much liquid cash you have. Looking at apples financial statement can help determine which liabilities are priorities to take care of and which assets can be converted to assist with to maintain the financial position of the company. It is advisable as above financial statement that a company with accrued expenses total liabilities would drastically increase.
A financial statement summarizes the company’s assets liabilities and shareholders’ equity at a specific point in time to analyze how a company pays for things (Weygand, Kieso, 2008). The balance sheet is efficient because it accounts for cash inventory and property on the asset side while accounts payable or long-term debt is accounted on the liability side. This allows investors to evaluate company’s performance and gives a prospect on the way forward. The balance sheet also presents the strengths of a company; investors are able to factually calculate days of working capital. Balance sheets can also identify trends of how net profit is used, receivables and the payables.
Reference
Eisen, P. J. (2007). Accounting Barron’s business review series business, Review books (5 ed., pp. 177-200). New York: Barron’s Educational Series
Weygand, Kieso, P. D. K. A. L. D. (2008). Hospitality financial accounting (2 ed., pp. 110-145).New Jersey: John Wiley and Sons.
Fidelity Bank Financial Statements-HIMX (APPLE INC INC0
