Apple is an American technology company headquartered in California. It is the world's largest technology company by revenue, with over $200 billion in annual sales. Apple uses a perpetual inventory system to continuously update inventory records with each sale and purchase. It applies the first-in, first-out (FIFO) cost flow assumption. In 2020, Apple's net sales were $209.8 billion with gross profit of $80.3 billion. Net income was $44.7 billion and earnings per share increased to $10.25. Inventory turnover was 10.3 times with average days in inventory of 35 days. Property, plant and equipment totaled $103.5 billion in 2020, with accumulated depreciation of
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
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 .
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