Description
Purpose of Assignment
The purpose of this assignment is to help you understand the basics of financial statement analysis related to the assets section of the balance sheet, data interpretation, and how financial information is obtained to understand how a company accounts for its long-lived assets.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making
Note: The financial statements of Apple, Inc. are presented in Appendix A of Financial Accounting. Instructions for accessing and using the company's complete annual report, including the notes to the financial statements, are also provided in Appendix A.
Complete a 1,050-word summary of findings and recommendations from the following questions:
- What were the total cost and book value of property, plant, and equipment at September 27, 2014?
- Using the notes to find financial statements, what method or methods of depreciation are used by Apple for financial reporting purposes?
- What was the amount of depreciation and amortization expense for each of the three years 2012-2014? (Hint: Use the statement of cash flows).
- Using the statement of cash flows, what are the amounts of property, plant, and equipment purchased in 2014 and 2013?
- Using the notes to the financial statements, explain in the summary how Apple accounted for its intangible assets in 2014.
Use the Week 2 Excel® spreadsheet to show your work and submit with your summary.
Explanation & Answer
hi, here is the assignment completely. in case of anything let me know. otherwise bye for now
Running Head: Financial Statement Analysis: Apple Inc.
Financial Statement Analysis: Apple Inc.
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Institution
Professor’s Name
Date
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Financial Statement Analysis: Apple Inc.
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Introduction
The performance of a business in its daily operations mainly rely on long lived assets.
These assets are very important and forms the integral part of the business. Among these assets
are property plant and equipment, leasehold improvements and goodwill. These assets are very
important when generating and even increasing earnings of the company. These assets are shown
in balance sheet as non-current assets. Depression is charged on assets as they are continually
being used. Assets are also impaired or amortized as they loss value. This paper will discuss
various aspects of Apple Inc., it will mainly concentrate book value and cost value of property.
It will also discuss the method of depression used by the company on its assets. The paper will
go further to discuss on accounting for intangible assets.
Property, plant and equipment
Total Cost and Book Value
As reported as at September 27, 2014, the total cost of property, plant and equipment
amounted to $39015 million. At the end of fiscal year September 28, 2013 the company had
reported Property, Plant and equipment as $28,519 million. This means that PPE had increased
by $10,496 million. This is a 36.80% increase in 2014 fiscal year. Land and building on the other
hand...
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