Interpreting Financial Statements BYPI2 Apple Inc is an inte

Interpreting Financial Statements BYPI-2 Apple Inc. is an international corporation that designs, solutions, and anufactures, and markets a range of mobile communication and balance sheet, the fo media devices, personal computing products, and portable digital music players, as well as a variety of related software, networking hardware products. In the assets section of its 2014 balance sheet, the following data were presented: APPLE INC Balance Sheets (partial) (in U.S. millions) September 28, September 27, 2014 Assets 2013 Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowance Inventories Deferred tax assets Vendor non-trade receivables Other current assets $ 13,844 $ 14,259 11,233 17,460 2,111 4,318 9,759 9,806 26,287 13,102 1,764 3,453 7,539 6,882 Is Long-term marketable securities 106,215 16,597 130,162 Property, plant and equipment, net Goodwill 20,624 4,616 4,142 3,764 $231,839 1,577 4,179 5,146 $207,000 Acquired intangible assets, net Other assets Total assets (b) Do the assets reported on the balance sheet above tell you wh Apple is worth? What information does the balance sheet g you about the company\'s value? Instructions (a) For a company such as Apple, what do you think its most s this recorded on the important economic resource is? Where i balance sheet? At what value (if any) should it be shown?

Solution

It is always complusory to prepare first Income statement before all because Net Income or loss is a part of Statement of Owner\'s Capital. On the other hand, the Statement of Owner\'s Capital is a part of Balance sheet, therefore it is constructed second and Balance Sheet is always prepared last.

AS QUESTION BYPI-2, PART B IS NOT COMPLETE, SO ATTEMPTING NEXT Q:PI-9A.
PI-9A)
INCOME STATEMENT
Service Revenue	153750
Less: Expenses:
Operating expenses	3545
Insu expense	3375
Interest expense	1195
Salaries expense	88230
Supplies expenses	20095
Total Expenses	116440
Net Income	37310
STATEMENT OF OWNER\'S EQUITY
Jim\'s Capital- OB	45850
less: Drawings	-44800
add:Net Income	37310
Jim\'s Capital-CB	38360
BALANCE SHEET
Liabilities & Shareholders Equity	Amount $	Assets	Amount $
AP	7850	Cash	8250
Current Liabilities	7850	AR	10080
Unearned revenue	15000	Prepaid insu	1685
NP	30800	Supplies	595
Jim\'s Capital	38360	Current Assets	20610
		Equipment	29400
		Vehicles	42000
Total	92010	Total	92010