ACC 291 WEEK 2 Financial Reporting Problem, Apple Inc

Purpose of Assignment

The purpose of this assignment is to help you understand the basics of financial statement analysis related to the assets section of the balance sheet, data interpretation, and how financial information is obtained to understand how a company accounts for its long-lived assets.

Assignment Steps 

Resources: Financial Accounting: Tools for Business Decision Making

Note: The financial statements of Apple, Inc. are presented in Appendix A of Financial Accounting. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A.

Complete a 1,050-word summary of findings and recommendations from the following questions:

·         What were the total cost and book value of property, plant, and equipment at September 27, 2014?

·         Using the notes to find financial statements, what method or methods of depreciation are used by Apple for financial reporting purposes?

·         What was the amount of depreciation and amortization expense for each of the three years 2012-2014? (Hint: Use the statement of cash flows).

·         Using the statement of cash flows, what are the amounts of property, plant, and equipment purchased in 2014 and 2013?

·         Using the notes to the financial statements, explain in the summary how Apple accounted for its intangible assets in 2014.

Use the Week 2 Excel® spreadsheet to show your work and submit with your summary.

Click the Assignment Files tab to submit your assignment.

Note: Student contributions and collaboration discussion notes relevant to the assignment instructions evidenced by postings to the team discussion area during Week 2 are worth 30 % (2.4 points) of the 8 possible points to earn for the individual assignment. Input posted before or after the current week are not eligible to be considered as relevant input to earn collaboration credit.