ne Fnand All Collanse All 2 Posts in this Thread 0 Unread on

ne Fnand All Collanse All 2 Post(s) in this Thread 0 Unread onymouS leek 1 Discussion Financial Statements\" Please respond to the following For this week\'s eActivity, review Apple Inc.\'s most recent financial statements. Click to review Apple\'s Financial Information. posted 6 years ago (last edited 1 year ago) Overall Rating: COLLAPSE . Based on your analysis of Apple\'s most recent financial statements, predict whether Apple\'s financial health will Ikely improve or deterorate over the next five (5) years. Provide a rationale for your response . Examine Apple\'s statement of cash flows. Recommend at least two (2) actions that Apple could take in order to maximize the use of its cash fiows. Provide a one ather poust rationale for your response Note: All students are required to post a minimum of two posts per online discussion thread. Students must have one onginal post and a minimum of per discussion thread. Click to review the Grading Rubric for Discussions Reply Quote 3 hours age

Solution

The apple, inc would have a good financial health in the next 5 years because

1) The current assets constitutes almost one-third of the Total Assets.

2) The income or retained earnings of the company has been at $98330m out of balance sheet total $375319

3) The current ratio of the company has been = 128 /100 or 1.28, which is supposed to be a good one.

4) The debt to equity ratio has been = 241/134 or 1.80 < 2 , which does not put that pressure on the income of the company.

The Apple, Inc.\'s Cash flow of the past year would bring attention to the three items of current assets and if the company improves on those, it could use the cash in a much better way :

a) There is a huge increase in the Accounts Receivables of $2093m, which should be kept at the lower level.

b) The inventory level of the company is at a much higher level of $2723m, the company should keep the same under check to have maximum out of Cash Flows.

c) The other current assets are also at the higher level of $4254m, which shows that the company is going with too much working capital.. The company must control strucking of the cash under all these assets for proper utilisation of the cash.

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