Apple Finance Essay

713 Words Nov 12th, 2014 3 Pages
University of Phoenix Material

Financial Statement Review

What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors?

APPLE Inc. net income as September, 27 2014 is $39,510 millions( p26) which is up from the prior year ( $37,037 millions).
This information is important for investors because It determines the efficiency and profitability of a company. The net income is usually used in Ratio analysis, where you can determine how efficient a company utilities its assets and equity. It should also be noted that operational income, net income before and net income after tax are used in the fundamental analysis of companies. Using these to determine
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What is the total value of assets? Why would this information be important to a potential creditor?

As September, 28 2014 the Total Assest of APPLE Inc. are $231,839 millions (p26).
Business often rely on oand and credits account to expand or launch. Before the loand is approved lender like to take a look to financial records. Also they value the worthiness of the company assets and evaluate the currently financial stability of the company and how a new debt would impact in the finance company. Basically they do a background check on companies requesting new loan, like lender do to a person when they applied for a credit card or car loan.

What is the total cash flow from operation?

The cash flow from APPLE Inc. as September 27, 2014 is $59,713 millions (p51).

What financial statement user would find this information most important?
The key components of the financial statements are income statement, balance sheet, and statement of cash flows. Each of these aspect can become as the most important information depending on the needs of the user. • Auditor perspective. Auditors audit the balance sheet, so that is the document that they have the greatest interest in. • Investor perspective. Investor analysis of share value is largely based on cash

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