Problem

Financial AssetsThe following financial assets appeared in a recent balance sheet of Apple...

Financial Assets

The following financial assets appeared in a recent balance sheet of Apple, Inc. (dollar amounts are stated in millions):

Cash and cash equivalents

$ 10,746

Marketable securities (short-term investments)

18,383

Accounts receivable (net of allowance for doubtful accounts of $98)

10,930

a. Define financial assets.


b. A different approach is used in determining the balance sheet value for each category of Apple Inc.’s financial assets, although each approach serves a common goal. Explain.


c. Why do companies like Apple Inc. hold so much of their financial assets in the form of marketable securities and receivables?


d. What types of investments might Apple Inc. own that are considered cash equivalents?


e. Explain what is meant by the balance sheet presentation of Apple Inc.’s Accounts Receivable as shown in the table.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search