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.
Materials
Explanation & Answer
Attached.
Name
Section
Date
(a)
Total cost and book value of property, plant and equipment
PPE net
(b)
Depreciation Method
Straight line method
(c)
Depreciation and Amortization
Depreciation and Amortization
(d)
Amount of purchased property, plant and equipment (2013 and 2014)
Amount purchased
(e)
Accounting for intangible assets
Acquired intangible assets net
531
Chapter 9 Financial Reporting Problem
Apple Inc.
$ 20,624,000,000.00
2012
2013
2014
$ 3,277,000,000.00 $ 6,757,000,000.00 $ 7,946,000,000.00
2013
2014
$ 8,165,000,000.00 $ 9,571,000,000.00
$ 4,142,000,000.00
531
Attached.
Running Head: FINANCIAL REPORTING
1
FINANCIAL REPORTING
Name
Instructor
Institutional Affiliation
Date
FINANCIAL REPORTING
2
FINANCIAL REPORTING APPLE COMPANY
Total cost and book value of property, plant, and equipment as at September 27, 2014
The company has shown significant investment on its assets. Looking at the property,
plant and equipment, the company had invested to the tune of $39,015,000,000 at cost as at
September 27, 2014. In the previous year September 27, 2013, the company had property, plant
and equipment at the cost of $28,519,000,000. The book value of the property plant and
equipment is recorded as $20,624,000,000 in 2014 an increase from the year 2013 which
recorded $16,597,000,000. The extract below summarizes the details on the cost as well as the
book value of property, plant and equipment.
Property, Plant and Equipment
2014
Land and buildings
Machinery, equipment and internal-use software
Leasehold improvements
$ 4,863
29,639
4,513
Gross property, plant and equipment
Accumulated depreciation and amortization
39,015
(18,391)
Net property, plant and equipment
$ 20,624
2013
$ 3,309
21,242
3,968
28,519
(11,922)
$ 16,597
The ext...
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