apple.pptx
- 1. Principles OF Accounting2 Under Supervision Dr / Ahmed Ashraf Mr / Mostafa Gamal Merchandise Inventory of Apple
- 2. Team Members Sarah Majed Ann Anwar Sarah Kamil Sandy Ashraf Rahma Ismail
- 3. Introduction of Apple Perpetual or periodic system Cost flow Assumptions Financial statements Receivables Property, plant and equipment
- 4. Apple Introduction Is an American multinational technology company headquartered in Cupertino , California . Apple is the world’s largest technology company by revenue . Number of locations :525 retail stores (2023) Products: AirPods , Apple watch , ipad , iphone ,Mac , full list Industry : Consumer electronics , software service , online service
- 5. is one of the largest and most influential industries . Merchandis ing Companies buy and sell merchandise rather than perform Services as their primary source of revenue . Companies that purchase and sell directly to consumers are called retailers. Companies that sell to retailers are known as wholesalers. Manufacturers usually classify inventory into three categories : 1) Raw materials . 2) Work in process . 3) Finished good .
- 6. Perpetual system Is important to use because it record of the cost of each inventory purchase and sale . It record behind every sale : 1- cost of good sold 2- sales revenue Apple use the perpetual system because of existing inventory account . Example:
- 7. Cost Flow Assumptions First in – First out (FIFO) Last in – First out (LIFO) Average – Cost Apple applies method First in – Frist out
- 8. Income statement # Multiple income statement
- 9. Income statement 2020 2019 209,817 196,134 Net sales 80,267 74,079 Gross profit 38.2% 37.7% Gross profit rate 51,513 48,305 Operating income 44,738 41,570 Net income
- 10. Earing per share EPS = Net income Number of shares EPS 2019 2020 8.92 10.25
- 11. Balance sheet
- 12. Inventory Turnover Measures the number of times on average the inventory is sold during the period . Cost of good sold = Average inventory = (2020) = 10.3times = Days in inventory = 37,005 (3,076+4,106 )2 365 10.3 = 35.43
- 13. Classifying Inventory The cost of securities sold is determined using the specific identification method .v Depreciation on property ,plant and equipment is recognized on a straight – line basis over the estimated useful lives of the assets .
- 14. Receivable Account receivable Notes receivable Others receivable (Trade) (Trade) (Non trade)
- 15. Net accounts receivable = Account receivable – Allowance 2020 2019 17,882 22,926 Net accounts receivable 14,193 22,878 Nontrade receivable
- 16. Account receivable Turnover = Net credit sales Average net = Account receivable account receivable Turnover = 56,985 (17,882 +22,926) /2 = 2.79 Times = Average Collection = Days in year account receivable period in Days turnover = 365 2.79 = 130.8
- 17. Sep 2020 Sep 2019 17,952 17,085 Land and buildings 75,291 69,797 Machinery and internal– use software 103,526 95,957 Gross property , plant and equipment (66,760) (58,579) Accumulated depreciation and amortization 36,76 37,378 Property , and equipment ,net # Fixed assets of Apple Inc Property,Plant and equipment
- 18. questions
- 19. thanks