Analyzing and Recording Transitions

Lesson 1

Read & Review Chapters for this week:

Accounting in Business
Analyzing and Recording Transitions

Refer to Apple’s financial statements in Appendix A for the following questions. Appendix A is located in your textbook.

Answer the following questions.

1. What amount of total liabilities does it report for each of the fiscal years ended September 28, 2013, and September 29, 2012?

2. What amount of total assets does it report for each of the fiscal years ended September 28, 2013, and September 29, 2012?

3. Compute its debt ratio for each of the fiscal years ended September 28, 2013, and September 29, 2012. (Report ratio in percent and round it to one decimal.)

4. In which fiscal year did it employ more financial leverage (September 28, 2013, or September 29, 2012)? Explain.

Complete the following questions.

Key comparative figures for Apple and Google follow.

1.What is the debt ratio for Apple in the current year and for the prior year?

2.What is the debt ratio for Google in the current year and for the prior year?

3.Which of the two companies has the higher degree of financial leverage? What does this imply?

Complete the above questions in a word document. Make sure you are clear with your responses. Utilize your textbook as a resource for the information that it is asking for you to input.
Please follow and reand the instruction carefully and answer.
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SAMPLE SOLUTION

1. What amount of total liabilities does it report for each of the fiscal years ended September 28, 2013, and September 29, 2012?

Apple’s total liabilities for the fiscal year that ended September 28, 2013 amounted to $83,451 while those reported in the fiscal year that ended September 29^th, 2012 were worth $57,854.

• What amount of total assets does it report for each of the fiscal years ended September 28, 2013, and September 29, 2012?

In the fiscal year ended September 28^th, 2013, Apple reported total assets worth $207,000 whereas in the fiscal year ended September 29^th, 2012, the company reported a total asset base of $176,064….