Homework Help is Here – Start Your Trial Now!
Business
Accounting
Review the income statement below and describe what its showing. Also explain why an income statement is more important than a balnce sheet or cash flow statement. If you don't think its income statements are more impotant, eplain why.

Review the income statement below and describe what its showing. Also explain why an income statement is more important than a balnce sheet or cash flow statement. If you don't think its income statements are more impotant, eplain why.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Review the income statement below and describe what its showing. Also explain why an income statement is more important than a balnce sheet or cash flow statement. If you don't think its income statements are more impotant, eplain why.

Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts) Three Months Ended Nine Months Ended June 30, 2018 June 29, June 30, June 29, 2019 2019 2018 Net sales: Products $ 42,354 $ 43,095 $ 162,354 $ 173,546 Services 11,455 10,170 33,780 29,149 Total net sales (1) 53,809 53,265 196,134 202,695 Cost of sales: Products 29,473 28,956 109,758 113,467 Services 4,109 3,888 12,297 11,473 Total cost of sales 33,582 32,844 122,055 124,940 Gross margin 20,227 20,421 74,079 77,755 Operating expenses: Research and development 4,257 3,701 12,107 10,486 Selling, general and administrative 4,426 4,108 13,667 12,489 Total operating expenses 8,683 7,809 25,774 22,975 Operating income 11,544 12,612 48,305 54,780 Other income/(expense), net 367 672 1,305 1,702 Income before provision for income taxes 11,911 13,284 49,610 56,482 Provision for income taxes 1,867 1,765 8,040 11,076 Net income $ 10,044 $ 11,519 $ 41,570 $ 45,406 Earnings per share: Basic $ 2.20 $ 2.36 $ 8.92 $ 9.07 Diluted 2.18 $ 2.34 $ 8.86 $ 8.99 Shares used in computing earnings per share: Basic 4,570,633 4,882,167 4,660,175 5,006,640 Diluted 4,601,380 4,926,609 4,691,759 5,050,963 (1) Net sales by reportable segment: Americas $ 25,056 $ 24,542 $ 87,592 $ 84,576 45,342 Europe Greater China 11,925 12,138 47,038 9,157 9,551 32,544 40,531 Japan 4,082 3,867 16,524 16,572 Rest of Asia Pacific 3,589 3,167 14,132 13,978 Total net sales 53,809 $ 53,265 $ 196,134 $ 202,695 (1) Net sales by category: iPhone $ 25,986 $ 29,470 $ 109,019 $ 128,133 Мас 5,820 5,258 18,749 17,858 iPad 5,023 4,634 16,624 14,397 Wearables, Home and Accessories 5,525 3,733 17,962 13,158 Services 11,455 10,170 33,780 29,149 Total net sales $4 53,809 $ 53,265 $ 196, 134 $ 202,695
Transcribed Image Text:Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts) Three Months Ended Nine Months Ended June 30, 2018 June 29, June 30, June 29, 2019 2019 2018 Net sales: Products $ 42,354 $ 43,095 $ 162,354 $ 173,546 Services 11,455 10,170 33,780 29,149 Total net sales (1) 53,809 53,265 196,134 202,695 Cost of sales: Products 29,473 28,956 109,758 113,467 Services 4,109 3,888 12,297 11,473 Total cost of sales 33,582 32,844 122,055 124,940 Gross margin 20,227 20,421 74,079 77,755 Operating expenses: Research and development 4,257 3,701 12,107 10,486 Selling, general and administrative 4,426 4,108 13,667 12,489 Total operating expenses 8,683 7,809 25,774 22,975 Operating income 11,544 12,612 48,305 54,780 Other income/(expense), net 367 672 1,305 1,702 Income before provision for income taxes 11,911 13,284 49,610 56,482 Provision for income taxes 1,867 1,765 8,040 11,076 Net income $ 10,044 $ 11,519 $ 41,570 $ 45,406 Earnings per share: Basic $ 2.20 $ 2.36 $ 8.92 $ 9.07 Diluted 2.18 $ 2.34 $ 8.86 $ 8.99 Shares used in computing earnings per share: Basic 4,570,633 4,882,167 4,660,175 5,006,640 Diluted 4,601,380 4,926,609 4,691,759 5,050,963 (1) Net sales by reportable segment: Americas $ 25,056 $ 24,542 $ 87,592 $ 84,576 45,342 Europe Greater China 11,925 12,138 47,038 9,157 9,551 32,544 40,531 Japan 4,082 3,867 16,524 16,572 Rest of Asia Pacific 3,589 3,167 14,132 13,978 Total net sales 53,809 $ 53,265 $ 196,134 $ 202,695 (1) Net sales by category: iPhone $ 25,986 $ 29,470 $ 109,019 $ 128,133 Мас 5,820 5,258 18,749 17,858 iPad 5,023 4,634 16,624 14,397 Wearables, Home and Accessories 5,525 3,733 17,962 13,158 Services 11,455 10,170 33,780 29,149 Total net sales $4 53,809 $ 53,265 $ 196, 134 $ 202,695
Expert Solution
Step 1

Income statement is the statement which shows the profit and loss earned during the year.

All expenses and revenues which relate to the period are shown in the income statement.

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS