The financial statements of Apple Inc. in Appendix A contain the following selected accounts, all in thousands of dollars.

Instructions

a. Identify the probable other account in the transaction and the effect on that account when:

1. Accounts Receivable is decreased. 

2. Accounts Payable is decreased. 

3. Inventories is increased.

b. Identify the other account(s) that ordinarily would be involved when:

1. Common Stock is increased. 

2. Property, Plant, and Equipment is increased.

Transcribed Image Text:

Common Stock $ 40,201 Accounts Payable 55,888 Accounts Receivable 23,186 Selling, General, and Administrative Expenses 16,705 Inventories 3.956 Net Property, Plant, and Equipment 41,304 Net Sales 265,595