Apple Inc. is a well recognized information technology company that has established its headquarters in California. After its last fiscal year that ended on the 24th September 2011, the company produced an annual report that was comprised of various sections. The company’s annual report began with an introductory section. Aspects such as the company’s operations, products, markets, methods of research and its development were discussed in the introductory section. Apple’s annual report also contained a section that discussed the company’s equity related issues. After the discussion of the company’s equity related issues, the annual report discusses some of the important factors that affected the company’s operations during the financial year ended September 2011.
The annual report also contains a section showing the company’s main financial statements. The company’s income, cash flow, financial position, equity statements are some of the statements that have been shown and analyzed in this section. The report also discusses its assessment of the risk that the company faces.
There are several factors that influenced the company’s financial performance for the financial year ended 24th September 2011. For example, the level of sales had increased by 66% when compared to the fiscal year that ended in 2010. The increase in sales of Apple’s products such as iPads, iPods, Macs and other music related products were the main causes for the increased revenue. However, Apple’s operating expenses increased by 36% in the year 2011. The companies selling and administrative expenses also increased by 38% in the year 2011. The increases in expenses were attributed to the increase in revenue. Normally, selling and administrative expenses increase with an increase in sales. Apple Incorporated’s net income recorded a 168% increase in the year 2011 when compared to the net income that was realized in the year 2010. The increase in net income could also be attributed to the increased turnover.
As at 24th September 2011, Apple Incorporated’s total assets were valued at $116.371 billion. Out of the total value of $116.371 billion, $44.988 was made up of current assets. One of the components of current assets was cash and cash equivalents which had a value of $9.815 billion. The company’s current assets were also composed of short term marketable securities worth $16.137 billion. Accounts receivable were valued $5.369 billion while inventories were valued at $776 million. Deferred tax assets were valued at $2.014 billion while non-trade receivables were valued at $6.348 billion. Other current assets were valued at $4.529 billion.
The company’s long term marketable securities were valued at $55.618 billion. Apple Incorporated’s property plant and equipment was valued at $7.777 billion. The company’s goodwill made up $896 million while long term intangible assets were valued at $3.536 billion. Other long term assets in the company were valued at $3.556 billion.
Apple Incorporated’s management is made up of the Chief Executive Officer and several senior managers. The whole management is structured in a manner that delegates duties to each member with the aim that the company operates ethically and competently. In order to guarantee the satisfaction of all board’s duties, the directors are required to make a focused and proactive approach to their duties. The management is expected to oversee that all junior staff employ high standards, responsibility and ethics when carrying out the company’s activities. Apple’s Incorporated’s management structure is structured in a way that will allow for effective monitoring of the company’s activities and performance. According to the auditor’s report in Apple Inc. annual report, the company had an effective internal control.
Apple Inc. (2012, July 1). Governance. Retrieved August 22, 2012, from Investor Relations: http://www.sec.gov/Archives/edgar/data/320193/000119312511282113/d220209d10k.htm
Apple Incorporated. (2011). Apple Inc form 10-k. Carlifonia: Edgar Online.
Porter, ,. G., & Norton, C. L. (2010). Financial Accounting: Impact on Decision Makers. London: Cengage Learning.
Porter, ,. G., & Norton, C. L. (2012). Using Financial Accounting Information: The Alternative to Debts and Credits. London: Cengage Learning.
Rave, P. (2010). How to approach the "Base of the Pyramid": A business strategy and country analysis foran ebook reader. Frankfurt: GRIN verlag.