Financial Accounting Assignment : Apple
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Added on 2021-04-24
Financial Accounting Assignment : Apple
Added on 2021-04-24
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Running head: ACCOUNTINGAccountingName of the StudentName of the UniversityAuthors NoteCourse ID
ACCOUNTING1Table of ContentsAnswer to Part 1:........................................................................................................................2Answer to question A:................................................................................................................2Answer to question B:................................................................................................................2Answer to question C:................................................................................................................2Answer to question D:................................................................................................................3Answer to question E:................................................................................................................4Answer to question F:................................................................................................................4Answer to part 2:........................................................................................................................5Answer to question 1:.................................................................................................................5Answer to question 2:.................................................................................................................5Answer to question 3:.................................................................................................................6Answer to question 4:.................................................................................................................7Reference List:.........................................................................................................................10
ACCOUNTING2Answer to Part 1:Answer to question A: In the financial accounting the operating cash flow or in other words the cash flowgenerated from the operations refers to the cash flow from the operating activities or cashflow form the operations (Bouville, 2016). Cash flow from operating activities is referred asthe sum of cash that an organization generates from the incomes exclusive of the cash that isrelated with the long term investment on the capital items. As evident from the financial statement of the apple annual report, the presentquestion is based on the ascertainment of the net cash flow by the operating activities fromthe cash flow statement during the year 2013 and 2014 will be stated. For Apple, INC duringthe financial year ended 2013 the net cash flow from operating activities stood $53,666million. On the other hand, taking into the considerations the net cash flow from theoperating activities during the year 2014 stood 59,713 million. Answer to question B:The term cash and cash equivalent comprises of the currency coins, receipts ofcheques which is yet to be deposited, reserves of petty cash, accounts of money market andhighly liquid short term investment that are having the maturity period of three months or lessduring the time of purchase of treasury bills (Scott, 2015). As evident from the annual reportof the Apple 2014 it is noticed that cash and cash equivalents of stood negatively to ($415)million. This represents that there was the decrease in the cash and cash equivalents for Appleduring the financial year of 2014.
ACCOUNTING3Answer to question C: As evident from the annual report of the Apple uses the Indirect method of calculatingthe net cash flow from the operating activities. Apple uses the indirect method by adjustingthe net income for the items that does not create an impact on the cash to ascertain the netcash flow from the operating activities (Williams, 2014). It is noteworthy to denote that alarge number of corporation makes the use of the indirect method to ascertain the net cashflow from the operating activities. Apple favours the indirect method because of primarilytwo reasons; a.It is easy to prepare and it is less costlyb.This method helps in focusing on the differences that are formed among the netincome and net cash generated from the operating activities.Answer to question D:As per the annual report of the Apple Inc, cash flow statement for the year endedSeptember 27, 2014. Apple reported an accounts receivable of $4232 million however duringthe year ended September 28 2013 the accounts receivable for apple stood 2172. Animportant assertion can be bought forward by stating that the accounts receivables of appleincreased from the year ended 2013 to 2014 with total increase of $2060. Apple also reporteda total decrease in the cash receipts for the same amount of from the total of accountsreceivables increased. Apple Inc, also reported an inventories during the financial year of September 27,2014 to a total amount of million 76 and in the financial year 2013 September 28 inventoriestotalled approximately $973 million. It can be stated that the inventories decreased from 2013to 2014 by 897 that stood negatively on the cash flow statement representing an increase ininventory and decrease in cash balance (Macve, 2015). Taking into the account the accounts
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