Answer questions A-F in problem CT12-1 in Financial Accounting

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Question Description

This is a two part assignment.

Part 1

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.

Part 2

Complete a 1,050-word summary of findings and recommendations from the following questions:

  • What is the par or stated value per share of Apple's common stock?
  • What percentage of Apple's authorized common stock was issued at September 27, 2014?
  • How many shares of common stock were outstanding at September 28, 2013, and at September 27, 2014?
  • Calculate the payout ratio, earnings per share, and return on common stockholders' equity for 2014.

Use the Week 5 Excel® spreadsheet and submit with your analysis and summary.

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Page 1 of 6 PRINTED BY: ashad03@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Bonds payable matured and were paid off at face value for cash. • A cash dividend of $26,030 was declared and paid during the year. Instructions Prepare a statement of cash flows using the indirect method. Net cash provided—oper. act. $176,930 Prepare a statement of cash flows—direct method. (LO 4), AP *P12-10A Data for Granger Inc. are presented in P12-9A. Further analysis reveals that accounts payable pertain to merchandise creditors. Instructions Prepare a statement of cash flows for Granger Inc. using the direct method. Net cash provided—oper. act. $176,930 Prepare a statement of cash flows—indirect method. (LO 2), AP P12-11A The comparative balance sheets for Spicer Company as of December 31 are presented below. https://jigsaw.vitalsource.com/api/v0/books/9781119228301/print?from=639&to=641 3/24/2017 Page 2 of 6 Additional information: 1. Operating expenses include depreciation expense of $42,000. 2. Land was sold for cash at book value. 3. Cash dividends of $12,000 were paid. 4. Net income for 2017 was $37,000. 5. Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $8,000 cash. 6. 40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000. Instructions Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. Net cash provided—oper. act. $94,000 Identify the impact of transactions on free cash flow. (LO 3), C P12-12A You are provided with the following transactions that took place during the year. Transactions Free Cash Flow ($125,000) https://jigsaw.vitalsource.com/api/v0/books/9781119228301/print?from=639&to=641 3/24/2017 Page 3 of 6 Transactions Free Cash Flow ($125,000) (a) Recorded credit sales $2,500. (b) Collected $1,900 owed by customers. (c) Paid amount owed to suppliers $2,750. (d) Recorded sales returns of $500 and credited the customer's account. (e) Purchased new equipment $5,000; signed a long‐term note payable for the cost of the equipment. (f) Purchased a patent and paid $65,000 cash for the asset. PRINTED BY: ashad03@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Instructions For each transaction listed, indicate whether it will increase (I), decrease (D), or have no effect (NE) on free cash flow. PROBLEMS: SET B AND SET C Visit the book's companion website, at www.wiley.com/college/kimmel, and choose the Student Companion site to access Problems: Set B and Set C. CONTINUING PROBLEM Cookie Creations (Note: This is a continuation of the Cookie Creations problem from Chapters 1 through 11.) CC12 Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. and would like you to prepare the statement of cash flows. Go to the book's companion website, at www.wiley.com/college/kimmel, to find the completion of this problem. EXPAND YOUR | CRITICAL THINKING FINANCIAL REPORTING PROBLEM: Apple Inc. https://jigsaw.vitalsource.com/api/v0/books/9781119228301/print?from=639&to=641 3/24/2017 Page 4 of 6 CT12-1 The financial statements of Apple Inc. are presented in Appendix A. E Answer the following questions. Instructions (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? PRINTED BY: ashad03@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. COMPARATIVE ANALYSIS PROBLEM: Columbia Sportswear Company vs. VF Corporation E CT12-2 Columbia Sportswear Company's financial statements are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions (a) Based on the information contained in these financial statements, compute free cash flow for each company. (b) What conclusions concerning the management of cash can be drawn from these data? COMPARATIVE ANALYSIS PROBLEM: Amazon.com, Inc. vs. Wal‐Mart Stores, Inc. https://jigsaw.vitalsource.com/api/v0/books/9781119228301/print?from=639&to=641 3/24/2017 Page 5 of 6 E CT12-3 Amazon.com, Inc.'s financial statements are presented in Appendix D. Financial statements of Wal‐‐Mart Stores, Inc. are presented in Appendix E. Instructions (a) Based on the information contained in these financial statements, compute free cash flow for each company. (b) What conclusions concerning the management of cash can be drawn from these data? REAL‐WORLD FOCUS AN CT12-4 Purpose: Use the Internet to view SEC filings. Address: biz.yahoo.com/i Steps 1. Enter a company's name. 2. Choose Quote. Answer questions (a) and (b). 3. Choose Profile; then choose SEC. Answer questions (c) and (d). Instructions Answer the following questions. (a) What company did you select? (b) What is its stock symbol? What is its selling price? (c) What recent SEC filings are available for your viewing? (d) Which filing is the most recent? What is the date? CT12-5 The March 4, 2010, edition of the Wall Street Journal Online contains an article by Jeffrey McCracken and Tom McGinty entitled “With Fistfuls of Cash, Firms on Hunt.” AP Instructions Read the article and answer the following questions. (a) How much cash did the nonfinancial (that is, nonbank‐like) firms in the Standard & Poor's 500 have at the end of 2009? How big an increase in cash did this represent over the prior year? (b) What reasons are given in the article for why companies might not want to keep hoarding cash? (c) What steps did Alcoa take to try to increase the company's cash? Were these efforts successful? (d) Often, companies issue shares of stock to acquire other companies. This represents a significant noncash transaction. At the time the article was written, why were many companies using cash rather than stock to acquire other companies? (e) In addition to acquisitions, what other steps can companies take to reduce their cash balances? CT12-6 The November 23, 2011, edition of the Wall Street Journal Online contains an article by John Jannarone entitled “Backlash from Netflix Buybacks.” AP https://jigsaw.vitalsource.com/api/v0/books/9781119228301/print?from=639&to=641 3/24/2017 Page 6 of 6 Instructions Read the article and answer the following questions. (a) What was the stock price for the shares of common stock issued by Netflix in the article? What was the price of the stock a few months previously? (b) Why did Netflix issue new shares at a time when its stock price was so depressed relative to previous valuations for its stock? (c) What previous actions had Netflix taken to reduce its cash balance? (d) What does the article say is the lesson that growth companies should learn from the Netflix example? PRINTED BY: ashad03@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://jigsaw.vitalsource.com/api/v0/books/9781119228301/print?from=639&to=641 3/24/2017 Name Section Date Chapter 12 Financial Reporting Problem Apple Inc. 2014 (a) Net cash provided by operating activities (in millions) (b) (c) (d) (e) (f) 713 2013 ...
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Tutor Answer

Tutor_Booth
School: Cornell University

i used apple inc sec-10k financial results, kindly let me know if you need anything changed. thank you

Running head: ANALYSIS OF STATEMENT OF CASH FLOW

Analysis of Statement of Cash Flow: Apple, Inc.
Name
Institution
Date

ANALYSIS OF STATEMENT OF CASH FLOW
Introduction
Cash flow is the net inflow and outflow of cash as well as the cash equivalents which gets
in and goes out of the business. When the cash flow is positive, it shows that there is increase in
the liquid assets of the company. Cash flow assists the company to settle its debts, pay expenses
and reinvest cash in the business. When the cash flow is negative, it shows that there is decrease
in the liquid assets of the company. Cash flow is composed of three categories: cash flow from
the operating activities, cash flow from the investing activities and the cash flow from financing
activities. Operating cash flow is usually related to day to day business operations of the
company. It tells how much cash is generated from the operations of a business and how much
the cash is used. Cash flows from the investing activities indicates the investments made in
business in form of long term assets, securities, and acquisitions it can also show the money
realized from the sales. Cash flow from financing activities shows the cash received by the
company to finance its operations. It includes cash received from issue of shares, bonds,
dividend paid, repayment of bonds, payment of interest, payment of dividends, etc.
This paper analyzes the cash flow statement of Apple, Inc. for the fiscal years ended
September, 27, 2014 and September 28, 2013. It also analyzes the reasons for increase or
decrease in cash and cash equivalents from the three activities from fiscal year 2013 to 2014.
a. What was the net cash provided by operating activities for the year ended
September 27, 2014? For the year ended September 28, 2013?
During financial year ended September 27, 2014 the net cash provided by the operating
activities was $59,713 million which was higher than $53,666 million during the financial year
ended September 27, 2013. The net cash flow from operating activities increased by $6,047
million or 11.27%. It shows an increase in liquidity of the company during financial year 2014.

ANALYSIS OF STATEMENT OF CASH FLOW
The main reason for the increase in the cash flow was the increase in accounts payable which
increased by $3,598 million (153.76%) during the financial year 2014. Other current and noncurrent liabilities also increased by $1,489 million (32.94%) from $4,521 million during
financial year 2013 to $6,010 million during financial year 2014. The factors responsible for the
outflow of cash were the accounts receivables, which increased by $2060 million (94.84%).
b. What was the amount of increase...

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