Purpose of Assignment

The purpose of this assignment is to expose you to the basic process involved in the analysis of the cash flow statement.

Assignment Steps

Resources:Appendix A ofFinancial Accounting: Tools for Business Decision Making

Note:This is a two part assignment.

Part 1

Answerquestions A-F in problem CT12-1 inFinancial Accounting(p. 640).

Providean 875-w...rd analysis of your findings.

Includeconclusions concerning the management of the company's cash.

Part 2

Completea 1,050-w...rd summary of findings and recommendations from the following questions:

• What is the par or stated value per share of Apple's common stock?
• What percentage of Apple's authorized common stock was issued at September 27, 2014?
• How many shares of common stock were outstanding at September 28, 2013, and at September 27, 2014?
• Calculate the payout ratio, earnings per share, and return on common stockholders' equity for 2014.

Usethe Week 5 Excelspreadsheet andsubmitwith your analysis and summary.

Specimen Financial Statements: Apple Inc. Once each year, a corporation communicates to its stockholders and other interested parties by issuing a complete set of audited financial statements. The annual report, as this communication is called, summarizes the financial results of the company's operations for the year and its plans for the future. Many annual reports are attractive, multicolored, glossy public relations pieces, containing pictures of corporate officers and directors as well as photos and descriptions of new products and new buildings. Yet the basic function of every annual report is to report financial information, almost all of which is a product of the corporation's accounting system. The content and organization of corporate annual reports have become fairly standardized. Excluding the public relations part of the report (pictures, products, etc.), the following are the traditional financial portions of the annual report: Financial Highlights Letter to the Stockholders Management's Discussion and Analysis Financial Statements Notes to the Financial Statements Management's Responsibility for Financial Reporting Management's Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Selected Financial Data The official SEC filing of the annual report is called a Form 10K, which often omits the public relations pieces found in most standard annual reports. On the following pages, we present Apple Inc.'s financial statements taken from the company's 2014 Form 10K. To access Apple's Form 10K, including notes to the financial statements, follow these steps: 1. Go to http://investor.apple.com. 2. Select the Financial Information tab. 3. Select the 10K annual report dated September 29, 2014. 4. The Notes to Consolidated Financial Statements begin on page 50. Name Section Date Chapter 12 Financial Reporting Problem Apple Inc. 2014 (a) Net cash provided by operating activities (in millions) (b) (c) (d) (e) (f) 713 2013 713 cial Reporting Problem Apple Inc. 713 713 CT12-1 The financial statements of Apple Inc. are presented in Appendix A. E Answer the following questions. Instructions (a) What was the amount of net cash provided by operating activities for the year ended September 27, 2014? For the year ended September 28, 2013? (b) What was the amount of increase or decrease in cash and cash equivalents for the year ended September 27, 2014? (c) Which method of computing net cash provided by operating activities does Apple use? (d) From your analysis of the September 27, 2014, statement of cash flows, was the change in accounts receivable a decrease or an increase? Was the change in inventories a decrease or an increase? Was the change in accounts payable a decrease or an increase? (e) What was the net cash used by investing activities for the year ended September 27, 2014? (f) What was the amount of interest paid in the year ended September 27, 2014? What was the amount of income taxes paid for the same period