Accounting

FINANCIAL STATEMENTS

ACC201 Module 1 Case Assignment

Jesus C. Palacios

Trident University International

For this module, I am to choose three publically traded companies. I chose Apple, Inc, Facebook.com and Amazon.com. The search for financials were pretty straight forward as all are publically traded companies and financial statements are a requirement pursuant to laws that are governed by the securities’ industry. Please note that each company is listed separately below and a snippet of each company’s financial statement has been embedded into this document for ease of review.

Apple, Inc.

For fiscal year 2012 Apple, Inc. remains a strong financial company with current liabilities of $38,542M reflecting a low 32% of cash and cash equivalents. It is important to note that the 32% does not include all current assets as the 32% just represents cash and cash equivalents. If you were to take into consideration current assets which include: cash and cash equivalents ($121,251M), accounts receivable ($10,930M) and inventory ($791M) you would find the percentage of debt (current liabilities) is reduced to 24% of current assets. Apple, Inc. financial statements detail that the company is financially stable @ year end 2012 with cash available (from cash, accounts receivable and inventories) after paying all currently liabilities of $122,070M.

For fiscal year 2012 Apple, Inc. increased its investment in operations with its largest investment of $151M in marketable securities as compared to prior years of $102M and $57M respectively. Other investments include: business acquisitions ($350M), acquisition of property, plant and equipment ($8,295M) and intangible assets ($1,107), all of which were an increase over prior years. Total increase in investment from prior years, more specifically 2011 and 2010 are 20% and 370% respectively. Property, Plant and Equipment reflected $15,452M on FY2012 balance sheet. This reflects an increase of 98% from...