Description
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.
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
Attached.
Analysis of Statement of Cash Flow: Apple, Inc.
Name of Student
Name of Professor
Course Title
Date Submitted
875-word analysis of Apple Inc concerning the management of the company's cash
1
Analysis of Statement of Cash Flow: Apple, Inc.
Cash flow refers to net inflow and outflow of cash and cash equivalents that gets in and goes out
of the business. If the cash flow is positive, it indicates that the liquid assets of the company are
increasing. It enables the company to settle its debts, pay the expenses and reinvest the cash in
business. If the cash flow is negative, it indicates that the liquid assets of the company are
reducing. A cash flow is composed of three categories. These three categories are cash flow from
operating activities, cash flow from investing activities and cash flow from financing activities.
Operating cash flow is related to the day to day business operations of the company. It tells how
much cash is generated from the operations of business and how much cash is used. Cash flows
from investing activities show investments made in business in form of long term assets,
acquisitions, securities, etc. or t...