Apple Corporation

Apple Inc., Fiscal Year 2012

Accounting 100

December 3, 2012

Apple Inc. was formed April 1, 1976, by Steve Jobs and Steve Wozniak. In its early years, Apple was considered a pioneer in the computer industry. Although the company was successful, it dealt with many internal struggles. In 1985, Steve Jobs quit the company after the board stripped him of all his powers, and it was not until 1996, when Steve Jobs came back to the company through a company acquisition, that Apple began its journey towards profitability. Today Apple is one of the most profitable inventive companies in its industry.

The main sections of the annual report are the independent auditors, Ernst & Young, opinions on the financial statements and on the internal controls, the Consolidated Financial Statements including the Balance Sheet, Statement of Operations, Statement of Shareholder's Equity, and Statement of Cash Flows, the corresponding Notes to the Financial Statements, and the Management Discussion and Analysis of the Financial Liquidity and Capital Resources.

For the year ending September 29, 2012, the Ernst & Young audit opinions are clean indicating the Financial Statements are presented fairly and no internal control discrepancies have been identified. The Consolidated Financial Statements show a strong Balance Sheet with $176 billion in Assets and a reasonable debt to equity ratio of 49%. The Statement of Operations shows Net Income of $41,733 million, an increase of 61% over the prior year. The Statement of Shareholder's Equity shows and increase in Common Stock due to Common Stock being issues under stock plans and in increase in Shareholder's Equity primarily driven by the Net Income for the year. The Return on Equity is an amazing 35% for the year. The Statement of Cash Flows shows an increase in Cash and Cash Equivalents of $931 million for the year adding to the strong Balance Sheet. The Notes to the Financial Statements provide additional...