Expand Your Critical Thinking 12-1 The financial statements of Apple Inc. are pr

Question

Expand Your Critical Thinking 12-1 The financial statements of Apple Inc. are presented in Appendix A. Click here to view Appendix A. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A. What was the amount of net cash provided by operating activities for the year ended September 26, 2015? For the year ended September 27, 2014? (Enter answers in millions.) 2015 2014 Net cash provided by operating activities $ million $ million LINK TO TEXT What was the amount of increase or decrease in cash and cash equivalents for the year ended September 26, 2015? For the year ended September 27, 2014? (Enter answers in millions.) Cash and cash equivalents 2015 by $ million 2014 by $ million LINK TO TEXT Which method of computing net cash provided by operating activities does Apple use? Apple uses the . LINK TO TEXT From your analysis of the 2015 statement of cash flows, did the change in accounts receivable require or provide cash? Did the change in inventories require or provide cash? Did the change in accounts payable require or provide cash? The change in accounts receivable in 2015. The change in inventories in 2015. The change in accounts payable in 2015. LINK TO TEXT What was the net outflow or inflow of cash from investing activities for the year ended September 26, 2015? (Enter answer in millions.) The net cash used by investing activities in 2015 was $ million. LINK TO TEXT What was the amount of income taxes paid in the year ended September 26, 2015? (Enter answer in millions.) Amount of income tax $ million t0001 t0002 t0003 t0004 t0005 Copyright © 2017, 2014, 2012, 2010 John Wiley & Sons, Inc. All rights reserved.

Explanation / Answer

For the year ended 2015 the net cash provided by operating activities for Apple was $81,266 million. For the year ended 2014 the amount stood at $59,713 million.

For the year ended 2015 the company’s cash and cash equivalents increases by $7,276 million and for the year 2014 there was decrease of $415 million.

Apple uses indirect method of computing net cash provided by operating activities as it starts with the net income and then makes necessary adjustments for depreciation, changes in working capital etc.

Change of accounts receivables in 2015 stood at a positive $611 million. This means that Apple’s accounts receivables declined in 2015 as compared to 2014. Hence change in accounts receivable provided cash to the company.

The number for inventories in the cash flow statement is a negative $238 million. This means that inventories increased in 2015 (compared to 2014) and hence inventories required cash.

Accounts payable’s adjustment figure in 2015’s cash flow statement was $5,400 million. This means that the company’s accounts payable balance increased in 2015 and hence accounts payable provided cash.

There was an outflow of cash from investing activities to the tune of $56,274 million.

Amount of income tax paid for 2015 stood at $1,499 million.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.