Description
Part 1
CT12-1 The financial statements of Apple Inc.
- Select the Financial Information tab.
- Select the 10‐K annual report dated September 29, 2014.
- The Notes to Consolidated Financial Statements begin on page 50.
Provide a 500-word analysis of your findings. Answer the following questions:
(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?
Include conclusions concerning the management of the company's cash.
Part 2
Complete a 500-750-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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Explanation & Answer
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Last Name 1
Name
Professor’s Name
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Date
Stockholders’ Equity
Corporations can create capital through debt and equity financing. Debt is funded through
the issuance of bonds or other long-term liabilities, while equity is funded through common
stock, which an important component of the Shareholders Equity of the company. Shareholder’s
Equity presents how much of the corporation actual belongs to those who have invested and are
considered owners in the corporation. Shareholders’ Equity can be found in two places on a
company’s financial statements: The Shareholders’ Equity section of the Balance sheet and on
the Statement of Shareholder’s equity. Additionally, shareholder’s equity includes components
such as retained earnings, treasury stock, dividends, and paid-in-capital.
An analysis of Apple, Inc’s. Shareholders’ equity will be conducted and will identify par
and stated values of common stock, the percentage of authorized commons stock, and how many
shares outstanding. Moreover, the payout ratio, earnings per share, and return on stockholder’s
equity for 2014 will be calculated and analyzed.
The par or stated value of Apple, Inc’s. common stock is presented in the 2014 10-K
annual report in the Balance Sheet as $0.00001. The par or stated value represents a
corporation’s legal capital and is not associated with the market value of the stock. Par value is
an old concept that continues to be used in the business world; however, it was utilized to
alleviate investors’ concern with respect to issuing shares below par value.
Last Name 2
The percentage of Apple’s authorized common stock can be calculated for September 27,
2014, by analyzing the company’s Balance Sheet. Apple had 12,600,000,000 shares of common
stock authorized on the date mentioned. The number of shares aut...
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