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Apple Inc Please use Apple Inc’s complete annual report, including the notes to its financial statements for 2019 and 2018 to answer this case study. Information are available at the company's website. Apple's financial statements contain the following selected accounts, stated in millions of dollars. Accounts Payable Accounts Receivable Property, Plant, and Equipment Instructions Cash and Cash Equivalents Research and Development Expense Inventories a. Answer the following questions. 1. What is the increase and decrease side for each account? 2. What is the normal balance for each account? b. Identify the probable other account in the transaction and the effect on that account when: 1. Accounts Receivable is decreased. 2. Accounts Payable is decreased. 3. Inventories are increased. c. Identify the other account(s) that ordinarily would be involved when: 1. Research and Development Expense is increased. 2. Property, Plant, and Equipment is increased.

Apple Inc Please use Apple Inc’s complete annual report, including the notes to its financial statements for 2019 and 2018 to answer this case study. Information are available at the company's website. Apple's financial statements contain the following selected accounts, stated in millions of dollars. Accounts Payable Accounts Receivable Property, Plant, and Equipment Instructions Cash and Cash Equivalents Research and Development Expense Inventories a. Answer the following questions. 1. What is the increase and decrease side for each account? 2. What is the normal balance for each account? b. Identify the probable other account in the transaction and the effect on that account when: 1. Accounts Receivable is decreased. 2. Accounts Payable is decreased. 3. Inventories are increased. c. Identify the other account(s) that ordinarily would be involved when: 1. Research and Development Expense is increased. 2. Property, Plant, and Equipment is increased.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Apple Inc

Please use Apple Inc’s complete annual report, including the notes to its financial statements for 2019 and 2018 to answer this case study. Information are available at the company's website. Apple's financial statements contain the following selected accounts, stated in millions of dollars.

Accounts Payable
Accounts Receivable
Property, Plant, and Equipment

Instructions

Cash and Cash Equivalents Research and Development Expense Inventories

a. Answer the following questions.
1. What is the increase and decrease side for each account? 2. What is the normal balance for each account?

b. Identify the probable other account in the transaction and the effect on that account when:

1. Accounts Receivable is decreased. 2. Accounts Payable is decreased.
3. Inventories are increased.

c. Identify the other account(s) that ordinarily would be involved when: 1. Research and Development Expense is increased.
2. Property, Plant, and Equipment is increased.

Current assets: Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 26, 2020 ASSETS: LIABILITIES AND SHAREHOLDERS' EQUITY: $ Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets Non-current assets: Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,976,763 and 17,772,945 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 38,016 $ 52,927 16,120 4,061 21,325 11,264 143,713 100,887 36,766 42,522 180,175 323,888 $ 42,296 $ 42,684 6,643 4,996 8,773 105,392 98,667 54,490 153,157 258,549 50,779 14,966 (406) 65,339 323,888 See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2020 Form 10-K $ September 28, 2019 48,844 51,713 22,926 4,106 22,878 12,352 162,819 105,341 37,378 32,978 175,697 338,516 46,236 37,720 5,522 5,980 10,260 105,718 91,807 50,503 142,310 248,028 45,174 45,898 90,488 338,516 (584)
Transcribed Image Text:Current assets: Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 26, 2020 ASSETS: LIABILITIES AND SHAREHOLDERS' EQUITY: $ Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets Non-current assets: Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,976,763 and 17,772,945 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 38,016 $ 52,927 16,120 4,061 21,325 11,264 143,713 100,887 36,766 42,522 180,175 323,888 $ 42,296 $ 42,684 6,643 4,996 8,773 105,392 98,667 54,490 153,157 258,549 50,779 14,966 (406) 65,339 323,888 See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2020 Form 10-K $ September 28, 2019 48,844 51,713 22,926 4,106 22,878 12,352 162,819 105,341 37,378 32,978 175,697 338,516 46,236 37,720 5,522 5,980 10,260 105,718 91,807 50,503 142,310 248,028 45,174 45,898 90,488 338,516 (584)
Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 29, 2018 ASSETS: $ LIABILITIES AND SHAREHOLDERS' EQUITY: Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. I 2018 Form 10-KI 40 Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Deferred revenue Term debt Other non-current liabilities $ $ September 30, 2017 20,289 53,892 17,874 4,855 17,799 13,936 128,645 194,714 33,783 18,177 246,674 375,319 44,242 30,551 7,548 11,977 6,496 100,814 2,836 97,207 40,415 140,458 241,272 35,867 98,330 25,913 $ 40,388 23,186 3,956 25,809 12,087 131,339 170,799 41,304 22,283 234,386 365,725 $ 55,888 $ 32,687 7,543 11,964 8,784 116,866 2,797 93,735 45,180 141,712 258,578 40,201 70,400 (3,454) 107,147 365,725 $ (150) 134,047 375,319
Transcribed Image Text:Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 29, 2018 ASSETS: $ LIABILITIES AND SHAREHOLDERS' EQUITY: Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. I 2018 Form 10-KI 40 Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Deferred revenue Term debt Other non-current liabilities $ $ September 30, 2017 20,289 53,892 17,874 4,855 17,799 13,936 128,645 194,714 33,783 18,177 246,674 375,319 44,242 30,551 7,548 11,977 6,496 100,814 2,836 97,207 40,415 140,458 241,272 35,867 98,330 25,913 $ 40,388 23,186 3,956 25,809 12,087 131,339 170,799 41,304 22,283 234,386 365,725 $ 55,888 $ 32,687 7,543 11,964 8,784 116,866 2,797 93,735 45,180 141,712 258,578 40,201 70,400 (3,454) 107,147 365,725 $ (150) 134,047 375,319
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