APPLE INC.

obtain the latest 10K for Apple Inc., (2022 year)

Answer the following questions in detail. Provide calculations where necessary. Work independently.

Label your answers clearly.

1. Define the term, revenues. How do revenues differ from gains that might be reported on a financial statement?

2. Review the financial statements. When does Apple recognize revenues? Does Apple have an established revenue recognition criteria?

3. Name the specific accounts used by the company to disclose revenues.

4. Look up FASB Statement of Concepts No. 5. Describe the revenue recognition criteria outlined in this pronouncement.

5. Discuss the performance obligations noted in Note 1 of the financial statements. Does Apples treatment of revenue align with FASB Statement of Concepts No. 5? If not, explain the differences.

6. Does Apple use multiple-element contracts? What kind of issues or problems might this present to the company?

7. Calculate the following ratios and analyze what the results mean for Apple for 2021 and 2022. Provide the formula and then show your calculations. Compare the results from the 2021 and 2022 data.

a. Acid test ratio

b. Current ratio

c. Cash ratio

d. Debt ratio

e. Debt to equity ratio

f. Interest coverage ratio

g. Asset turnover ratio

h. Inventory turnover ratio

i. Receivables turnover ratio

j. Gross margin ratio

k. Operating margin ratio

l. Return on assets ratio

m. Return on equity ratio

8. Based on the notes to the financial statements, what legal obstacles or issues does Apple face? How should these legal issues be reflected on the financial statements?

9. What constitutes the majority or focus of Apples asset structure?

10. Apple reclassified its net sales for FY2018. What was the purpose of this reclassification?