Apple Inc.like all other businessesadjusts its accounts prior to yearend to get correct amounts for the financial
Question:
Apple Inc.—like all other businesses—adjusts its accounts prior to yearend to get correct amounts for the financial statements. Examine Apple’s Consolidated Balance Sheets in Appendix A and online in the filings section of www.sec.gov. Pay particular attention to “Accrued expenses.”
Requirements
1. Why does a company have accrued expenses payable at year-end?
2. See Apple’s Consolidated Balance Sheets for 2015 and 2016. What was the balance of Accrued expenses at the end of each of those balance sheet years? What type of account is “Accrued expenses”?
3. Calculate net working capital, the current ratio, and the debt ratio for Apple at September 26, 2015, and September 24, 2016. Did the amount of net working capital and ratio values improve, deteriorate, or hold steady during fiscal 2016? Do Apple’s ratio values indicate relative financial strength or weakness?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
ANSWER 1 Companies have accrued expenses payable at yearend to account for expenses that have been i...View the full answer
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
