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

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