Thursday, February 21, 2019

Decoding Apple’s Balance Sheet Apa Format Essay

Decoding apples Balance Sheet In March of 2009, orchard apple tree had its best March quarter tax income and recompense in orchard apple tree history ( apple). In order to see how this occurred, it is main(prenominal) to research over the fiscal statements of apple. There is a lot of reading available to investors who ar interested in investing in a company. By looking specifically at the balance canvass of orchard apple tree I am going to de termine if investing in Apple is a ripe idea or a bad idea. whatsoever things I am going to consider argon Apples assets, liabilities, and sh beholders law. These areas should give me insight to how the best quarter in Apple history ame to be.Looking at the up-to-date assets of Apple, change and cash equivalents went down from 1 1. 8 one million million million dollars to 4. 4 jillion dollars. This may look bad at first, but all of the other assets mustiness be added to this in order to get an overall picture of the assets. Sho rt- term vendable securities went up from 10. 2 billion dollars to 20. 5 billion dollars. This helped Apples assets grow tremendously. Accounts receivable fell to 1. 9 billion dollars from 2. 4 billion dollars. With the rest of the current assets fgured in, inventories, deferred tax assets, and other current assets, the lend current assets ose to 33. billion dollars from 32. 3 billion dollars. That was a sneak of 1. 5 billion dollars (Apple). It is important to take into account the rest of the assets. For example, long-term marketable securities rose 1. 5 billion dollars, property, plant and equipment rose 0. 91 billion dollars, goodwill stayed the same, acquired intangible assets fell 0. 017 billion dollars, and other assets rose 0. 56 billion dollars. Now that we know how each asset was affected during this quarter, we come on to the final numbers, which are total assets rose 3. 6 billion dollars. Apple grew its assets substantially during this quarter.I would think Apple woul d be a good company to invest in. Before I made any decisions I would investigate the balance sheet further in order to equal liabilities and shareholders equity with the previous quarter. This will give me a better understanding of the financial situation of the company (Apple). Current liabilities are in the first section of liabilities and shareholders equity. The following accounts are current liabilities and how they fared. Accounts payable went down from 5. 5 billion dollars to 3. 9 billion dollars. Accrued expenses went down 1 billion dollars.Deferred revenue went up from 4. 8 billion dollars to 7 billion dollars. The total change in current liabilities was a decrease of 0. 4 billion dollars. The other two liabilities categories, deferred revenue (non-current) and other non-current liabilities, rose collectively 0. 7 billion dollars. This gives the total liabilities a essay of 0. 3 billion dollars. This amount compared to current assets is not as significant. So far Apple i s still looking like a good investment because the assets of Apple rose 1. 5 billion dollars whereas their liabilities moreover rose 0. billion dollars.It is now time to take a look at the final category of the balance sheet, the shareholders equity (Apple). The value of shareholders equity, common stock, rose from 7. 1 billion dollars to billion dollars. stash away other comprehensive income rose . 07 billion dollars. Total shareholders equity rose 3. 3 billion dollars. So adding together the rise of 0. 4 billion dollars in liabilities with the 3. 3 billion dollar rise of the shareholders equity, we get the same amount, 3. 7 billion dollars, as we got for the rise in total assets. The balance sheet balances (Apple).With the rise in assets, which led to the rise in retained earnings, I think Apple would be a good company to invest in because they are growing their business. I would want to look at past financial statements, specifically the balance sheets, in order to compare asse ts, liabilities, and shareholders equity from past quarters, but from the information presented on the balance sheet from this quarter I would be willing to invest in Apple. References Apple reports second quarter results. (2009, April 22). Retrieved August 29, 2010, from http//www. apple. com/pr/library/2009/04/22results. html

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