BU.210.620- Assuming that Apple makes all sales on account,

An acceptable report should address the following questions.

• 1. Assuming that Apple makes all sales on account, compute the amount of cash collected from customers during 2014.
• 2. Compute the cost of inventory (either newly purchases or manufactured) during 2014.
• 3. Assume that all of Apple’s inventory purchases are made on account, compute the amount of cash paid to suppliers of inventory during 2014.
• 4. Identify Apple’s working capital and current ratio in 2014. Comment on how have they changed from 2013? Identify the sources of the changes.
• 5. Determine if Apple has any advances from customers.
  • a) Compute how much the advances from customers account for Apple’s current liabilities in 2014.
  • b) Comment on how does this percentage compare to that in 2009?
  • c) Establish the business challenges Apple faces when managing large amount of advances from customers.
  • d) Detect the factors that may contribute to the change in the trend of advances from customers.
• 6. Compute how much the accounts receivable account contributes to Apple’s current assets in 2014?
  • a) Comment on how this percentage compares to that in 2009.
  • b) Identify the pros and cons of selling more on account.
• 7. Find out the cash cycle of Apple in 2014 and interpret what the number indicates.