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    Accounting Prinicples BYP6-1

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    Geovanny Raposo
    Financial Reporting Problem: Apple Inc. The notes that accompany a company’s financial statements provide informative details that would clutter the amounts and descriptions presented in the statements. Refer to the financial statements of Apple Inc. in Appendix A as well as its annual report. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A.

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    Accounting Prinicples BYP6-1

    Uploaded by

    Geovanny Raposo
    519 views9 pages
    Financial Reporting Problem: Apple Inc. The notes that accompany a company’s financial statements provide informative details that would clutter the amounts and descriptions presented in the statements. Refer to the financial statements of Apple Inc. in Appendix A as well as its annual report. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A.

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    Financial Reporting Problem: Apple Inc. The notes that accompany a company’s financial statements provide informative details that would clutter the amounts and descriptions presented in the statements. Refer to the financial statements of Apple Inc. in Appendix A as well as its annual report. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    519 views9 pages

    Accounting Prinicples BYP6-1

    Uploaded by

    Geovanny Raposo
    Financial Reporting Problem: Apple Inc. The notes that accompany a company’s financial statements provide informative details that would clutter the amounts and descriptions presented in the statements. Refer to the financial statements of Apple Inc. in Appendix A as well as its annual report. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    BYP6-1

    Financial Reporting
    Problem: Apple Inc.
    The notes that accompany a companys financial
    statements provide informative details that would
    clutter the amounts and descriptions presented in
    the statements. Refer to the financial statements
    of Apple Inc. in Appendix A as well as its annual
    report. Instructions for accessing and using the
    companys complete annual report, including the
    notes to the financial statements, are also provided
    in Appendix A.

    Financial Reporting
    Problem: Apple Inc.
    Instructions:
    Answer the following questions. Complete the requirements in millions of dollars, as
    shown in Apples annual report.

    a) What did Apple report for the amount of inventories in its


    consolidated balance sheet at September 29, 2012? At
    September 28, 2013?
    b) Compute the dollar amount of change and the percentage
    change in inventories between 2012 and 2013. Compute
    inventory as a percentage of current assets at September 28,
    2013.
    c)

    How does Apple value its inventories? Which inventory cost flow
    method does Apple use? (See Notes to the Financial Statements.)

    d) What is the cost of sales (cost of goods sold) reported by Apple


    for 2013, 2012, and 2011? Compute the percentage of cost of
    sales to net sales in 2013.

    (a) What did Apple report for the amount of


    inventories in its consolidated balance sheet
    at September 29, 2012? At September 28,
    2013?

    (a) What did Apple report for the amount of


    inventories in its consolidated balance sheet
    at September 29, 2012? At September 28,
    2013?

    September 29, 2012 September 28, 2013

    Inventories

    $791 million

    $1,764 million

    (b) Compute the dollar amount of change and the


    percentage change in inventories between 2012
    and 2013. Compute inventory as a percentage of
    current assets at September 28, 2013.
    Dollar change in inventories between 2012 and 2013:
    $1,764 $791 = $973 million increase
    Percent change in inventories between 2012 and 2013:
    $973 $791 = 123% increase
    2013 inventory as a percent of current assets:
    $1,764 $ 73,286 = 2.4%

    (c) How does Apple value its inventories?


    Which inventory cost flow method does
    Apple use? (See Notes to the Financial
    Statements.)
    According to Apples Consolidated Financial
    Statements, Inventories are stated at the lower
    of cost, computed using the first-in, first-out
    method, or market. If the cost of the inventories
    exceeds their market value, provisions are made
    currently for the difference between the cost and
    the market value.
    (see Note 1 Inventories)

    (d) What is the cost of sales (cost of goods sold)


    reported by Apple for 2013, 2012, and 2011?
    Compute the percentage of cost of sales to net
    sales in 2013.

    (d) What is the cost of sales (cost of goods sold)


    reported by Apple for 2013, 2012, and 2011?
    Compute the percentage of cost of sales to net
    sales in 2013.
    Year
    Cost of Sales

    2013

    2012

    2011

    $106,606 million

    $87,846 million

    $64,431 million

    2013 cost of sales as a percentage of net sales


    $106,606 $170,910 = 62.4%

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