Accounting practice analysis

Refer to Apple's financial statements in Appendix A to answer the following. Required: 1. What percent of the original cost of Apple's Property, Plant and Equipment account remains to be depreciated as of (a) September 30. 2017, and (b) September 24, 2016? Assume these assets have no salvage value and the entire account is depreciable. Hint: Accumulated Depreciation is listed under "Property, Plant and Equipment in the notes to Apple's financial statements in Appendix A. 2. Much research and development is needed to create the next iPhone. Does Apple capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred? 3. Compute Apple's total asset turnover for the year ended (0) September 30, 2017, and (b) September 24, 2016. Assume total assets at September 26, 2015, are $290,345 ($ millions). 4. Using the results in part 3, is Apple's asset turnover on a favorable or unfavorable trend? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What percent of the original cost of Apple's Property, plant and Equipment account remains to be depreciated as of (a) September 30, 2017, and (b) September 24, 2016? Assume these assets have no salvage value and the entire account is depreciable. Hint: Accumulated Depreciation is listed under Property, Plant and Equipment in the notes to Apple's financial statements in Appendix A. (Round your answers to 1 decimal place.) Show less + % of Original Cost (a) September 30, 2017 (b) September 24, 2016 Required 2 > Refer to Apple's financial statements in Argendix A to answer the following. Required: 1. What percent of the original cost of Apple's Property. Plant and Equipment account remains to be depreciated as of (a) September 30, 2017, and (b) September 24, 2016? Assume these assets have no salvage value and the entire account is depreciable. Hint: Accumulated Depreciation is listed under "Property. Plant and Equipment in the notes to Apple's financial statements in Appendix A. 2. Much research and development is needed to create the next iPhone. Does Apple capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred? 3. Compute Apple's total asset turnover for the year ended (a) September 30, 2017, and (b) September 24, 2016. Assume total assets at September 26, 2015, are $290,345 ($ millions). 4. Using the results in part 3, Is Apple's asset turnover on a favorable or unfavorable trend? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Much research and development is needed to create the next iPhone. Does Apple capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred? Research and developments costs are: Capitalized and amortized over the life of the product. Expensed as incurred. Refer to Apple's financial statements in Appendix A to answer the following. Required: 1. What percent of the original cost of Apple's Property, plant and Equipment account remains to be depreciated as of (a) September 30, 2017, and (b) September 24, 2016? Assume these assets have no salvage value and the entire account is depreciable. Hint: Accumulated Depreciation is listed under "Property. Plant and Equipment in the notes to Apple's financial statements in Appendix A. 2. Much research and development is needed to create the next iPhone. Does Apple capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred? 3. Compute Apple's total asset turnover for the year ended (0) September 30, 2017, and (b) September 24, 2016. Assume total assets at September 26, 2015, are $290,345 ($ millions). 4. Using the results in part 3, is Apple's asset turnover on a favorable or unfavorable trend? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute Apple's total asset turnover for the year ended (a) September 30, 2017, and (b) September 24, 2016. Assume total assets at September 26, 2015, are $290,345 ($ millions). (Round your answers to 2 decimal places.) Total Asset Turnover Itimes (a) September 30, 2017 (b) September 24, 2016 | times Refer to Apple's financial statements in Arpendix A to answer the following Required: 1. What percent of the original cost of Apple's Property. Plant and Equipment account remains to be depreciated as of (a) September 30, 2017 and (b) September 24, 2016? Assume these assets have no salvage value and the entire account is depreciable. Hint: Accumulated Depreciation is listed under "Property, Plant and Equipment in the notes to Apple's financial statements in Appendix A. 2. Much research and development is needed to create the next iPhone. Does Apple capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred? 3. Compute Apple's total asset turnover for the year ended (a) September 30, 2017, and (b) September 24, 2016. Assume total assets at September 26, 2015, are $290,345 ($ millions). 4. Using the results in part 3, is Apple's asset turnover on a favorable or unfavorable trend? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the results in part 3, is Apple's asset turnover on a favorable or unfavorable trend? Is Apple's asset turnover on a favorable or unfavorable trend? Required 3 Favorable Unfavorable X appendix A.pdf Media/Connect Production/bne/wild fap_24e/appendix A.pdf dations of Bu Chapter 4 Learn S... Appendix A Francial Statement information September 24, 2016 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 ASSETS Cuments Cash and cash equivalents 20.289 Shanem marketable securities 53.892 Accounts receivable less allowances of $58 and 553respectively 20,484 46,671 15,754 2,132 13.545 283 Vendor non-trade receivables Other current sets Tocal currentes Long-term marketable securities Property, plant and equipment, nel 17.799 11.916 12.645 194,714 33.783 106,869 170,430 27,010 21298 32206 Acquired angleses, et Other secrets Totalt 321.686 LIABILITIES AND SHAREHOLDERS' EQUITY Crew Acapable Accred expenses Delerde Camper 49.049 25,744 37.294 22,027 11,977 8105 100,814 Longum debit 97,207 40,415 241,272 79,006 2.930 75.427 36,074 191.437 Retained ning 35,867 98,310 31.251 96,364 Total shareholders 114,047 128,209 321,656 See companying Nets Comelidated ancial Statements on.com MediaW L PIVO Foundations of Bu Chapter 4 Learn S... APPLE ) September 25, 2015 213,715 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS nii, et number of res which are reflected in the wands and personen September Seurs ended September 24, 2016 2017 229 234 2152519 141048 131,376 Cast of Gross margin Opening espins 10045 Resch and development Sellingen and adinistrative Total operating expert 61,345 24 Operating in Other income expense nel Income before provision for income 48,351 45,687 Nel come Earnings per a Shares de computing earning per share 5,217,242 5,212 5751.421 10 5500,281 Diluted Corch didenda del per share See am ing Notes to Calidad Fiestaments September 16, 2015 (411) 2.05 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME cinsis) Yearded September 30, 2017 September 24, 2016 Not income 40155 4567 Cherchesive ) Change in foreign currency fr o nt of tax effects of $077) 5 0 1 respectively T 224 Change in dieses e derivieren. Chunge is of deathes, net of tax exe) of 48 517) 441), respectively 1.315 Adjustment for ins) loss and included is not income het die h of $475,513 and rectively Tocal change is g osson derivative simo Chinein und gains in the serie Chung in fair value of market curities of tax bene p o 25, 56, respectively Austinent for at s e realized and included in the in expetente 35. S eperti Teal change in n eed to make the securities (46) 16 Teacher come income 349) (92) (72) (481) MacBook Pro Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Comprehensive Total Common Stock and Additional Paid-In Capital Retained Income Shareholders Shares Amount Earnings (Loss) Equity 5.866,161 $ 23,313 $ 87.152 Balances as of September 27, 2014 1,082 111,547 53,394 53,394 Net income (1.427) (1.427) Other comprehensive income (loss) Dividends and dividend equivalents declared (11.627) (11,627) Repurchase of common stock (325.032) (36,026) (36,026) Share-based compensation 3,586 3,586 Common stock issued, net of shares withheld for employee taxes 37,624 (231) (609) (840) Tax benefit from equity awards, including transfer pricing adjustments 748 748 Balances as of September 26, 2015 5,578,753 $ 27,416 $ 92.284 $ 119.355 Net income 45,687 45,687 Other comprehensive income (loss) 979 Dividends and dividend equivalents declared (12.188) (12.188) Repurchase of common stock (279,609) (29,000) (29,000) Share-based compensation 4,262 4.262 Common stock issued, set of shares withheld for employee taxes 37,022 (806) (419) (1.225) Tax benefit from equity awards, including transfer pricing adjustments 379 379 Balances as of September 24, 2016 5,336,166 $ 31,251 $ 96,364 634 S Net income 128,249 48,351 Other comprehensive income doss) 48,351 Dividends and dividend equivalents declared (784) (784) (12,803) Repurchase of common stock (12,803) (246,496) Share-based compensation (33,001) (33,001) 4,909 Common stock issued, net of shares withheld 4,909 for employee taxes Tax benefit from equity awards, including 36,531 (913) (581) (1.494) transfer pricing adjustments Balances as of September 30, 2017 620 5.126,201 $ 35,867 OR 130 (150) $ 134,047 See accompanying Notes to Consolidated Financial Statements. Apple Inc. APPLE ES . 24, 2016 21,120 September 26, 2015 S 13.844 SE 39 58 88 45.687 53.394 11.257 3,586 1.382 (238) 999 3.735) (283) 5,001 1.042 9.058 81,266 OVO - 2 = 595 3 Years ended Cash and cash equivalents, beginning of Operating activities: Net income Adjustments to reconcile net income to hy operating activities Depreciation and amortization Share-based compensation expense Deferred income tax expense Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments made in connection with business ac tions. Payments for acquisition of property, plant and equipment Payments for squisition of intangible assets Payments for strategic investments, net Other Cash used in investing activities Financing activities Proceeds from issuance of common stock Excess tax benefits from equity awards Payments for taxes related to net share settlement of equity Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Change in commercial paper, net Cash used in financing activities Increase (decrease in cash and cash equivalents Cash and cash equivalents, end of the year 31.775 (166,402) 14,538 107,447 94.564 0291 (12,451) (11,247) (241) (395) (1.388) (110) (45.977) (26) 446) (56,274) 555 495 407 543 749 (1.499) (11.561) (35,253) 27.114 (1,874) (12,769) (32,900) 28.662 (3,500) 3,852 (17.347) (195) 20.289 (1,570) (12.150) (29,722) 24.954 (2,500) (397) (20,483) (636) 20.484 2.191 (17.716) 7276 21120 $ $ Supplemental cash flow disclosure: Cash paid for income taxes, et = 10444 S 13,252