Apple’s Financial Analysis Part 2

APPLES FINANCIAL ANALYSIS FOR THE YEAR ENDED kinsfolk 27, 2008 Income Statement: a) orchard apple tree Inc uses multi-step income statement format. It organizes its operating section by using functional expense classification. b)There are no crotchety items presented in orchard apple trees income statement. Also the company did not discontinue any of its operations, neither had any changes in accountancy principles. The net income for 2008, 2007, and 200 is $4,834, $3,496, and $1,989 respectively. The net income has increased continually in past three years. Net income increased 38.3% in 2008. Apples net income growth for 2007 was 75.7%. The income statement doesnt subscribe to restating. I also believe that Apple is not managing their earnings. The companys tax and earnings per share are undervalued and Apples financials appear radically weaker than they actually are. It is because in April, 2007 they made a bad decision when announced that Apple will be using what is commonly referred to as the subscription method of accounting for gross revenue of the iPhone where the sales revenue from the iPhone is deferred and recognized over a 24-month breaker point instead of at the point of sale. When disregarding the deferred revenue chemical mechanism of subscription accounting, Apple actually earned $7.48 in EPS on $38.041 cardinal in revenue.

That compares to the $5.36 in EPS on $32.479 billion in revenue that Apple reported on a GAAP-basis. During 2008, the Company adopted the Financial Accounting Standards Boards (FASB) Financial variant No. (FIN) 48, Accounting for Uncertainty in Income Taxesâ€"an explanation of FASB Statement No. 109. FIN 48 changes the accounting for distrust in income taxes by creating a new framework for how companies should recognize, measure, present, and see uncertain tax positions in their financial statements. 09/27/08Restated 09/27/09 Net Sales32,47932,479 Cost Of Goods21,33421,334 Gross Profit11,14511,145 exchange &... If you want to get a full essay, order it on our website: Orderessay

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