In module 3, you will provide information using Apple's financial statements.

-When does Apple's fiscal year end?

-What is Apple's Gross profit for the last three years?

-What items make up Apple's operating expenses?

-How is Apple's operating income calculated? Please state the items and do the calculations.

-What is the other name for pretax income?

-What items make up current assets?

-What items make up total assets?

-What items make up current liabilities

-What items make up total liabilities?

-Plug the balance sheet items into the accounting equation and make sure both sides are equal.

-What is Apple's capital structure?

-What items make up Apple's operating, investing and financing activities?

Apple's Fiscal Year and Gross Profit

Apple's Fiscal starts on October 1st and lasts for 364 days ending on September 28th, 2024. According to Apple's calendar, its fiscal year concludes annually on the last Saturday of September.

Apple's gross profit for 2021 was approximately $152.84 billion.Its gross profit in 2022 was increased to about $170.78 billion and its gross profit in 2023 was approximately $169.15 billion. Apple's Gross profit total for the last three years was around $492,766.00 billion.

Operating Expenses and Income

Apple's operating expenses include research and development, as well as selling, general, and administrative expenses. The total operating expenses for Apple based on the fiscal years ending September 2019 to 2023 averaged in the amount of $241 billion.

Apple's operating income is calculated by subtracting operating expenses from gross profit. Apple's Operating Income for the trailing twelve months ended on Sep. 2023 was $114,301 Million based on the following expenses, research and development, as well as selling, general, and administrative. It's Research and Development for the trailing twelve months ended in September 2023 was $29,915 Million.

Apple's selling, general, and administration expense for the trailing twelve months ended in September 2023 was $24,932 Million. selling, general & admin expenses of 21.973 billion from fiscal years ending September 2019 to 2023.

Financial Definitions and Concepts

Another name for Pretax income, is earnings before taxes or gross income. Pretax income is profit made before any income tax has been subtracted from it. An employee gross pay is income that has not been taxed.

Current assets are cash and short-term assets that can be quickly converted to cash within one year or operating cycle. Some current assets are cash, accounts receivables, stocks and inventory. Also, they can be referred to as liquid assets due to its availability to be converted to cash in a short timeframe if needed.

Total assets are a complete account of everything a person or business owns with an emphasis on the total value of assets. Calculating these assets can assist a company in having a clear understanding of their financial well-being as well as knowing its overall value. Some examples of total assets are current assets, intangible assets, long term assets as well as equipment.

Current liabilities are financial responsibilities that a company owes within a one-year time frame. Companies should display assets that can be readily liquidated to convert them into cash when necessary.

These companies should have sufficient liquidity to pay its current liabilities in a timely manner.

The accounting equation can balance a company's balance sheet by computing its liabilities plus its equity totaling its assets. A company's assets must consistently equal the combination of its liabilities and equity as presented on the balance sheet.

Apple's Capital Structure

Apple's capital structure is made up of a combination of equity and debt along with a broad range of financial assets. Its equity is comprised of accumulated profits and common stocks. Apple's debt consists of bonds, commercial paper, and other long-term liabilities.

Apple's Business Activities

Operating activities include revenue and expenses, investing activities involve buying and selling assets, and financing activities relate to borrowing, issuing stock, and paying dividends.

Apple's investing activities involve purchasing or selling property within its best interest. Other activities could involve Apple making investments, acquiring or divesting subsidiaries. Apple's financing activities mostly relates to transactions associated with acquiring and repaying its capital. Financing activities could include releasing a stock or stock buyback, issuing debt or redeeming debt, as well as distributing dividends. Apple's operating activities includes its daily business operations which produces revenue and sustains expenses. Its operating activities encompassed the fundamental operations of the company. These activities include Apple's ability to sales its products and services to consumers. Also, they are able to pay suppliers and employee salaries, as well as pay accumulating operational expenses.

Is this information correct based on information from https://www.sec.gov/edgar apple inc 10k report