Apple Inc. presents reliable financial statements. The research focuses on the annual financial report of Apple Inc. for 2011. The research centers on scrutinizing the material portions of the annual financial report. The annual financial report indicates Apple Inc. performed profitably well during 2011.
There are main sections of the annual financial report. The financial report discusses the company’s business. The report includes the company background. The report shows the company’s business strategy and business organization. The report presents Apple Inc.’s products, product support, and services.
The second part of the report centers on Apple Inc.’s stock market activities. The stock market activities include the rise and fall of the company’s stock market equities. The second part of the annual report discusses the dividends, purchase of equities, and company stock performance. The report presents the company’s executive overview and selected financial data. Lastly, the report presents the company’s off-balance-sheet accounts from 2012 to 2016.
In addition, Part II includes the company’s income statement accounts. The income statement includes the company’s net sales data. During 2011, the company’s net sales increased from $65,225 to $108,249. The same statement indicates the company’s operating income. During 2011, the company’s operating income increased from $18,385 to $33,790. Further, the statement indicates the company’s net income. During 2011, the company’s net income increased from $4,527 to $8,283 (Gibson, 2010).
Further, Part II includes the company’s balance sheet report accounts. The balance sheet includes the company’s current assets. During 2011, the company’s current assets had increased from $ 41,678 to $44,988. The same report shows the company’s total assets. During 2011, the company’s Balance Sheet shows that the company’s total assets had increased from $75,183 to $116,371. The report lists the company’s current liabilities. During 2011, the company’s current liabilities increased from $20,722 to $27,970. The report also displays the company’s total liabilities. During 2011, the company’s total liabilities increased from $27,392 to $39,756. The lower portion of the report shows the company’s stockholder’s equity accounts. During 2011, the stockholders’ equity amount increased $47,791 to $76,615 (Moyer, 2009).
Furthermore, Part II shows the statement of cash flows report. The report shows the sources of cash flows and outflows from its operating activities. The report indicates the cash inflows and outflows from the company’s financing transactions.
The report presents the cash inflows and outflows from the entity’s investing functions. The 2011 statement of cash flows indicates that the company’s cash and cash equivalent amounts had declined from $11,261 to $9,815 (Stolowy, 2006).
Several factors influence Apple Inc.’s financial performance. The sales figures will affect the company’s financial performance. The company’s operating expenses will shape the company’s financial performance. The company’s cost of sales will influence the company’s financial performance. The demand for the company’s products and services manipulate the company’s financial performance (Besley, 2008).
The company holds primary assets. The current assets are composed of cash and cash equivalents, inventories, accounts receivables, short-term marketable securities, and deferred tax assets. During 2011, the company’s current assets increased from $41,678 $44,988. The long-term marketable securities are composed of investments held for more than one year. The 2010 long-term marketable securities increased from $ 25,391 to $ 55,618. The company’s property plant and equipment section include buildings, land, and production equipment. During the same year, the company’s property, plant, and equipment increased from $4,768 to $7,777. The company’s goodwill acquired intangible assets, and other assets form part of the company’s total assets portfolio (Brigham, 2001).
Apple’s Inc.’s management implements a viable internal control environment. The company implements policies to ensure all financial data are fairly safely guarded and presented. The company implements manufacturing processes to reduce avoidable expenses to allowable levels. The company’s stringent internal control policies include a rule that only authorized personnel to have access to confidential and vital operations. The company hires internal auditors to ensure to reduce errors in the preparation of business transaction reports. The company hires skilled production workers, computer programmers, and administration employees to ensure all financial reports are not fraudulent. The company establishes benchmarks as a basis for monitoring and resolving all unfavorable performance outcomes. The company also ensures all large value assets are recorded and accounted for (Ricchiute, 2006).
As proof, the company’s external auditor, Ernst & Young LLP, stated in their audit report of Apple Inc.’s 2011 financial reports that the company’s internal control complies with established accounting internal control standards. The external auditors use the internal control benchmarks required by the Public Company Accounting Oversight Board as the basis for giving an audit opinion on Apple Inc.’s internal control processes. As proof, the external auditors’ unqualified opinion on the company’s financial statement report shows Apple Inc.’s internal control procedures are firmly and validly implemented to prevent errors and frauds.
Based on the above discussion, Apple Inc. presents trusted financial reports. The financial report of Apple Inc. indicates the balance sheet, income statement, and cash flow information for 2011. The research indicates the company’s internal control processes are materially valid and reliable. Indeed, the annual financial report fairly indicates Apple Inc. performed profitably well during 2011.
References
Besley, S. (2008). Essentials of Managerial Finance. New York: Cengage Press.
Brigham, E. (2001). Fundamentals of Financial Management. Sydney: Harcourt
Gibson, C. (2010). Financial Statement Analysis. New York: Cengage Press.
Moyer, R. (2009). Contemporary Financial Management. New York: Cengage Press.
Ricchiute, D. (2006). Auditing and Assurance Services. New York: Academic Press.
Ricchiute, D. (2006). Auditing and Assurance Services. New York: Academic Press.
Stolowy, H. (2006). Financial Accounting and Reporting. Sydney: Thompson Press.