Question

Choose a company to research that is either a retailer or of your choice as per his/her instructions. or manufacturer. Inform your professor to resear instruction company answer the following questions ype k for you gesearch-Your Name" and hand it in to your save it as based on 20 points, but you can assign for any answers into this document, save it as "Research swer the professor in hard copy or upload. Grading is based on 20 amount and use the same allocation. port questions. T 1. Insert the link to the annual report or 1o-kyou used: () 2. Locate Management's Responsibility for Financial Reporti Who are the people that signed this statement and their What are main ideas here? positions? (2) It is called the "Report of Independent Registered Public Find the Auditor's Report. 3. Accounting Firm." a. Which firm audits the company? (1) b. Did the company receive an unqualified (clean) audit report? Which report indicates this? (2) wording in the Find the Notes to Consolidated Financial Statements a. Which note is the summary of significant accounting policies? (1) 4. b. What is the name of one other note? (1) 5. Look at the Income Statement. What is it called? a. Is it single-step or multiple-step? How do you know? (1) b. How many years are presented? (1) c. What percentage of the company's income was paid in dividends? Show your calculation. (1) Look at the Balance Sheet. What is it called? a. What asset classifications does the company haverchensive b. Does the company have Accumulated Other Comp 6. mpany have? (1) and how much? (2) c. What kinds of stock has the company issue d. Write the company's accounting equation. method? How do you know?(2) tie t? Why orh and amortization? Can you tie this number into the 212) Look at the Statement of Cash Flows a. Does the company use direct or indiren b. How much was depreciation and amort income statement? Why or why not?4 .

Answer 1

1) For preparation of research report, we are using the 10-K report of Apple Inc. for the fiscal year ended September 30, 2017 2) Management Responsibility over Financial Reporting can be traced at Item No. 7 of the report. After having decline in the sales of product and services of Apple Inc. (hereinafter will be called as "The Company") in the previous reporting year of 2016, The management of the company has improved in the pricing strategy of the products and new development in the features of product which has resulted into net rise by 6% in the sales value of operating segments. During the year, several new services in the category of digital content services has been introduced The following are the representative of Apple Inc. who has signed the report: a. Timothy D. Cook (CEO and Director) b. Luca Maestri (Senior VP and CFO) c. Chris Kondo (Senior Director of Corporate Accounting) d. James A. Bell (Director) e. Al Gore (Director) f. Robert A. Iger (Director) g. Andrea Jung (Director) h. Arthur D. Levinson (Director) i. Ronald D. Sugar (Director) j. Susan L. Wagner (Director) In the Report of Independent Registered Public Accounting Firm, a. Ernst and Young LLP had conducted an audit for consolidated balance sheet and 3) other related statements. b. Apple Inc. has got the unqualified report of independent registered public accounting firm and these wordings of the report " In our opinion, the financial statements referred to above present fairly, in al material respects, the consolidated financial position of Apple Inc. at September 30, 2017 and September 24, 2016, and the consolidated results of its operations and its cash flows for each of the three years in the period ended September 30, 2017, in conformity with U.S. generally accepted accounting principles." Indicates that the report is unqualified report.

4) In the Notes to Consolidated Financial Statements a. Note 1 is the summary of Significant Accounting Policies. b. One other Note is namely "Financial Instruments" which is numbered as Note-2 5) For the Income Statements, It is called as Consolidated Statement of operations. It is multi-step because the expenses has been categorized into operational expenses and non-operational expenses. Three years data has been presented in the statement of operations. The company has paid 25.89% of its basic earnings per share as its cash dividend a. b. C. This rate can be calculated as below: i. Cash Dividend per share $ 2.40 ii. Basic Earnings per share: $ 9.27 iii. Dividend Rate : (2.40/9.27)*100: 25.89%

6) For the Balance Sheet, It is called as Consolidated Balance Sheet: a. Asset has been classified into Current, Long term marketable securities, Property plant and Equipment, Goodwil, Acquired Intangible Assets and other non-current assets. The company has accumulated other comprehensive loss of $ 150 million. Company has issued the common stock only in its capital d. b. c. Company's Accounting equation: "Total Assets Total Liabilities+Total Shareholder's equity" 7) For the Consolidated Statement of Cash flows: a. The company uses indirect method of preparing cash flows because the consolidated statement of cash flows' presentation begins with the balance of net income and then adjustments for non-cash items and non-operating gains and losses. b. For fiscal year ended Sep 30, 2017 the charge of depreciation and amortization is $ 10m157 million. It cannot be tied in income statement because the charge of depreciation and amortization is grouped in the balance of selling, general and administrative operating expenses.