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Running head: FINANCIAL ANALYSIS OF APPLE INC
Financial Statements Analysis of Apple Inc.
FINANCIAL ANALYSIS OF APPLE INC
Plant, Property and Equipment
Plant, property, and equipment, are the tangible fixed assets of the company. These
assets are physical in nature and it is expected that economic benefit will be derived from these
assets for a period that is longer than one year. Lease-hold improvements, machinery and
equipment, land and buildings, motor vehicles, etc. are some of the few examples of, plant,
equipment, and property. Goodwill is considered an intangible asset as it is not physical and
tangible in nature. Property, plant and equipment are revealed in assets non-current assets section
of the balance sheet. Since the benefit from plant, equipment, and property is derived for a period
of more than one year so the decline in their value is charged to revenue. These assets are
depreciated every year except land as the value of land appreciates in relation to time. The
amount of depreciation is accumulated and is deducted from the original cost of the asset at the
time of making presentation in the balance sheet. This value is known as book value and the
property, plant and equipment appear at this value in the financial statements (Apple Inc., 2014).
Total Cost and Book Value
The total cost of tangible assets is the cost for which these assets are bought or are
purchased. It is also called historic cost as it is the cost of purchasing the assets. The company’s
tangible assets are recorded as: land and buildings for $4,863 million, machinery, equipment and
internal use software for $29,6...
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