The following financial assets appeared in a recent balance sheet of Apple Computer, Inc. (dollar amounts are

Question:

The following financial assets appeared in a recent of Apple Computer, Inc. (dollar amounts are stated in millions):
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,263
Marketable securities (short-term investments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,201
Accounts receivable (net of allowance for doubtful accounts of $52) . . . . . . . . . . . . . . 3,361
a. Define financial assets.
b. A different approach is used in determining the value for each category of Apple Computer’s financial assets, although each approach serves a common goal. Explain.
c. Why do companies like Apple Computer hold so much of their financial assets in the form of marketable securities and receivables?
d. What types of investments might Apple Computer own that are considered cash equivalents?
e. Explain what is meant by the presentation of Apple Computer’s as shown in the table.

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