Decoding Apple’s Balance Sheet Apa Format Essay

Decoding apples Balance Sheet In March of 2009, Apple had its best March quarter taxation and earnings in Apple history (Apple). In order to see how this occurred, it is important to flavour everyplace the financial statements of Apple. There is a lot of information available to investors who are interested in put in a company. By looking specifically at the balance planing machine of Apple I am going to determine if investing in Apple is a full idea or a bad idea. Some things I am going to consider are Apples assets, liabilities, and shareowners fair play. These areas should give me insight to how the best quarter in Apple history ame to be. tone at the veritable assets of Apple, cash and cash equivalents went down from 1 1. 8 trillion dollars to 4. 4 zillion dollars. This may look bad at first, but all of the other assets must be added to this in order to get an overall picture of the assets. Short- term sellable securities went up from 10. 2 one million million milli on dollars to 20. 5 billion dollars. This helped Apples assets grow tremendously. Accounts receivable swing to 1. 9 billion dollars from 2. 4 billion dollars. With the rest of the current assets fgured in, inventories, deferred tax assets, and other current assets, the total current assets ose to 33. billion dollars from 32. 3 billion dollars. That was a rise of 1. 5 billion dollars (Apple). It is important to take into account the rest of the assets. For example, long-term marketable securities ruddiness 1. 5 billion dollars, property, plant and equipment go up 0. 91 billion dollars, goodwill stayed the same, acquired intangible assets fell 0. 017 billion dollars, and other assets rose 0. 56 billion dollars. Now that we know how each asset was moved(p) during this quarter, we come to the final numbers, which are total assets rose 3. 6 billion dollars. Apple grew its assets substantially during this quarter.I would think Apple would be a good company to invest in. Before I do a ny decisions I would investigate the balance sheet further in order to compare liabilities and shareholders equity with the previous quarter. This will give me a better understanding of the financial smirch of the company (Apple). Current liabilities are in the first section of liabilities and shareholders equity. The following accounts are current liabilities and how they fared. Accounts payable went down from 5. 5 billion dollars to 3. 9 billion dollars. Accrued expenses went down 1 billion dollars.Deferred revenue went up from 4. 8 billion dollars to 7 billion dollars. The total change in current liabilities was a decrease of 0. 4 billion dollars. The other two liabilities categories, deferred revenue (non-current) and other non-current liabilities, rose collectively 0. 7 billion dollars. This gives the total liabilities a rise of 0. 3 billion dollars. This amount compared to current assets is not as significant. So far Apple is still looking like a good investment because the a ssets of Apple rose 1. 5 billion dollars whereas their liabilities only rose 0. billion dollars.It is now sentence to take a look at the final category of the balance sheet, the shareholders equity (Apple). The value of shareholders equity, common stock, rose from 7. 1 billion dollars to billion dollars. Accumulated other comprehensive income rose . 07 billion dollars. Total shareholders equity rose 3. 3 billion dollars. So adding unitedly the rise of 0. 4 billion dollars in liabilities with the 3. 3 billion dollar rise of the shareholders equity, we get the same amount, 3. 7 billion dollars, as we got for the rise in total assets. The balance sheet balances (Apple).With the rise in assets, which led to the rise in retained earnings, I think Apple would be a good company to invest in because they are growing their business. I would want to look at past financial statements, specifically the balance sheets, in order to compare assets, liabilities, and shareholders equity from past quarters, but from the information presented on the balance sheet from this quarter I would be willing to invest in Apple. References Apple reports second quarter results. (2009, April 22). Retrieved August 29, 2010, from http//www. apple. com/pr/library/2009/04/22results. hypertext markup language