Apple has entered into contracts that require the future purchase of goods or services (unconditional purchase obligations).
Question:
Apple has entered into contracts that require the future purchase of goods or services (“unconditional purchase obligations”). At year-end 2017, Apple reports the following for these future payments.
Required
1. As of year-end 2017, what was the total dollar amount (in millions) of Apple’s future payments for unconditional purchase obligations?
2. As of year-end 2017, compute the ratio of the total dollar amount of Apple’s future payments for unconditional purchase obligations divided by Apple’s total liabilities. (Obtain total liabilities from Apple’s balance sheet as of September 30, 2017, in Appendix A.)
3. Is the ratio computed in part 2 greater than or less than the ratio of accounts payable divided by total liabilities as of year-end 2017? (Obtain accounts payable from Apple’s balance sheet as of September 30, 2017, in Appendix A.)
Accounts PayableAccounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1 Total payments for unconditional purchase obligations 8663 2 Total payments for ...View the full answer
