Answer questions A-F in problem CT12-1 in Financial Accounting (p. 640).
Provide an 875-word analysis of your findings.
Include conclusions concerning the management of the company’s cash.
Complete a 1,050-word summary of findings and recommendations from the following questions:
Use the Week 5 Excel® spreadsheet and submit with your analysis and summary.
T12-1 The financial statements of Apple Inc. are presented in Appendix A.
Answer the following questions.
(a) What was the amount of net cash provided by operating activities for the year ended September 27, 2014? For the year ended September 28, 2013?
(b) What was the amount of increase or decrease in cash and cash equivalents for the year ended September 27, 2014?
(c) Which method of computing net cash provided by operating activities does Apple use?
(d) From your analysis of the September 27, 2014, statement of cash flows, was the change in accounts receivable a decrease or an increase? Was the change in inventories a decrease or an increase? Was the change in accounts payable a decrease or an increase?
(e) What was the net cash used by investing activities for the year ended September 27, 2014?
(f) What was the amount of interest paid in the year ended September 27, 2014? What was the amount of income taxes paid for the same period?
Once each year, a corporation communicates to its stockholders and other interested parties by issuing a complete set of audited financial statements. The annual report, as this communication is called, summarizes the financial results of the company’s operations for the year and its plans for the future. Many annual reports are attractive, multicolored, glossy public relations pieces, containing pictures of corporate officers and directors as well as photos and descriptions of new products and new buildings. Yet the basic function of every annual report is to report financial information, almost all of which is a product of the corporation’s accounting system.
The content and organization of corporate annual reports have become fairly standardized. Excluding the public relations part of the report (pictures, products, etc.), the following are the traditional financial portions of the annual report:
The official SEC filing of the annual report is called a Form 10‐K, which often omits the public relations pieces found in most standard annual reports. On the following pages, we present Apple Inc.‘s financial statements taken from the company’s 2014 Form 10‐K. To access Apple’s Form 10‐K, including notes to the financial statements, follow these steps: