Accounting 2 in practice

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
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.

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. Classifying
Inventory
 Manufacturers usually classify inventory into three categories :
1) Raw materials .
2) Work in process .
3) Finished good .
 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 .

13. Inventory
Turnover
 Measures the number of times on average the inventory
is sold during the period .
Cost of good sold
=
Average inventory
=
(2020)
286’515
(33,685+35,180)2
= 8.3 times
= Days in inventory = 365 8.3 = 43.9

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. Sep 2020
Sep 2019
17,952
17,085
Land and buildings
75,291
69,797
Machinery , equipment
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

17. questions

18. thanks